British Gas to donate 10% of profits to struggling customers

theguardian.com:

British Gas has announced it will donate 10% of its profits to help its poorer customers manage rising gas and electricity bills for the “duration of the energy crisis”.

Ahead of an expected rise in the price cap on energy on Friday, the company’s owner, Centrica, said it would donate £12m this autumn into an existing support fund. Grants of £250 to £750 would be given to poorer customers, and the pledge to donate 10% of profits every six months would last for the duration of the energy crisis “backdated to the start of 2022”, it added.

The Centrica boss, Chris O’Shea, said: “As a responsible business we want to do more to support our customers during this difficult time. This increased investment in supporting our customers adds to the financial support and advice we already offer and ensures more grants will be available as we go into this winter.

“We’re proud to have put together a £25m-plus customer support package, which will grow.”

The regulator Ofgem will publish its latest update to the energy price cap on Friday, with a uniform expectation of a steep increase in the price households pay for energy.

The average annual domestic energy bill is currently capped at £1,971, but this is forecast to hit £3,582 in the autumn and as much as £4,400 in April.

Centrica reported adjusted operating profits of £1.3bn in the six months to June – up from £262m a year earlier – most of which came from oil and gas drilling.

However, the latest offer of support will be based on British Gas’s retail supply profits, which were £98m.

The government has promised a package of help but there have been warnings many people will face significant financial hardship without further support.

The announcement came after the head of EDF Energy’s retail