With or without price guarantee, bills too high amidst record oil and gas profits

3rd March 2023, London - Responding to news that the UK Government could extend the energy price guarantee beyond April, to stop bills from rising to £3,000 per year, Alice Harrison, Fossil Fuels Campaign Leader at Global Witness, said:

"It's a sign of just how bad things have got that today’s debate is whether bills should be unaffordable or ridiculously unaffordable. To even get to a point where £3,000 a year spent on energy is possible is madness. Coupled with obscene profits of energy companies it couldn't be clearer that the fossil-fuelled energy system is broken."

"Just last month fossil fuel companies around the world reported record-breaking profits into the multi-billions. Meanwhile in the UK, oil giants like BP and Shell are also being handed billions of pounds of taxpayer’s money in the form of tax breaks and other subsidies."

"A sensible approach to BP and Shell making a combined £55 billion in 2022 would be to better distribute these windfall profits amongst a population that is paying through the teeth just to stay warm and cook. And then to invest what’s needed for us to switch to homegrown renewable power, which is far cheaper, cleaner and better for our energy security than oil and gas."

Analysis by Global Witness, following the recent publication of energy company profits, showed:

• $18.7 billion of BP’s $27.7 billion profits was windfall
• Chevron’s return of $35.5 billion was $27.1 billion higher than the four-year average
• Of Exxon’s astonishing $55.7 billion profits, $45 billion was windfall
• $21.3 billion of Shell’s $39.9 billion (the largest profit ever for a UK company) was windfall
• Total’s profits of $36.2 billion included $18.7 billion as windfall profits