Energy companies have reported substantial profits over the past year

Article posted

4th Aug 2022

Read time

2-3 min read

Author

Mollie Pinnington

Oil companies such as Shell have reported an increase in profits over the past year, amid the energy prices for consumers rapidly rising. The $11.5 billion profit has reignited the call for a windfall tax for companies such as Shell. One tax would relieve the burden on struggling families during the worst cost of living crisis that has been seen in a long time.

The average household is estimated to be paying nearly £4,000 a year for their energy bills this coming January, which has mostly come off the back of Russia’s actions in the cutting of energy supplies to Europe in retaliation to sanctions from the west. However, some commented on how the price hikes that consumers have been facing have aided in increasing corporate profits.

Shell has responded to the backlash it has received due to this by saying that they are going to use its financial strength to invest in more energy supplies and cut carbon emissions. They also plan to give more money to investors, increasing clean energy infrastructure.

Another energy supplier that has seen an increase in profits is Centrica, which owns British gas. However, they have said that they will use this to support customers through this challenging time with energy prices.