'Obscene' profiteering

Unite has turned up the heat on energy companies and the massive profits they make from the British public with the release of a new report today (3 November), with Unite general secretary Sharon Graham saying the profits were “completely obscene” in an interview on the BBC. 

The Unite Investigates Energy Profiteering report has lifted the lid on why the UK has the highest energy prices in Europe, exposing huge levels of profiteering and reveals how foreign countries and the world’s richest individuals are feasting on the profits.

The report reveals that in 2024, energy companies made a total of £30 billion in pre-tax profits. This in turn resulted in every UK household on average paying £500, of their already excessively high heating bills, in profits. This is at a time when household energy bills have increased by 42 per cent since Winter 2021.

The report also brings to light the excessive profits available in the sector. The average profit margin in the sector is 23 per cent (three times the national average). In some areas of the sector especially in the grid, profit margins currently stand at 38 per cent.

While some people have blamed green levies for high energy bills, the report found that excessive profits are a far bigger factor. In 2024, green levies are under a third of energy profits (£9.9 billion) compared to £30 billion for profits. 

To make matters worse the biggest green levy, the renewable obligations scheme, is used to subsidise the profits of energy generators.

Unite general secretary Sharon Graham said: “What the Unite energy costs report  clearly shows, is that households are being fleeced pure and simple.

“Energy bills up by 42 per cent since 2021, whilst energy companies made £30 billion profit in just one year. The government is turning a blind eye to these excessive profits. That must change. Everyday people cannot continue to pay.

“The chaos of the current system has resulted in the highest energy bills in Europe.

“We need to look at other countries like France and begin to plan to own our own energy. Only then, can the ever-bulging profits currently going to shareholders, be used to keep bills down for households and businesses.”

The report details how some of the world’s wealthiest people and international investors have a significant stake in the UK’s privatised energy system. US Investors Blackrock and Vanguard both have major stakes in UK energy companies. While Czech billionaire Daniel Kretinsky owns gas generator EP, Hong Kong’s richest man Li Ka Shing is the largest shareholder in UK Power Networks, while Warren Buffet is the largest shareholder in Northern Powergrid.

Foreign states also financially benefit, receiving a third of all energy profits. The Norwegian Government through its foreign wealth fund received nearly £6 billion (£5.9) in gas profits. This is by far the largest amount but other foreign states that are receiving UK energy profits include France (owns nuclear generator EDF), Denmark (owns wind generator Orsted) and Qatar (gas importer and owns shares in many energy companies).

Unite has explored ways to solve the crisis, and the report sets out several measures to end corporate profiteering of the energy sector including:
•    Public ownership, through renationalisation at a book value total cost of £90 billion, beginning with the Grid (both transmission and distribution networks)
•    A significant pay rise for energy workers so they directly benefit from the profits they are producing
•    A truly just transition for North Sea workers as the UK moves to net zero
•    Properly fund GB Energy to allow it to fully invest in new generation projects
•    Maintain a public stake in green energy projects so that the UK directly benefits from future projects.

Read the full Unite Investigates Energy Profiteering Report here.

By Keith Hatch