Energy companies in the UK reported profits exceeding £23.1 billion in 2025, indicating a rise from the previous year’s £22.7 billion, as households prepare for increased bills during the upcoming summer months. This analysis by the End Fuel Poverty Coalition does not include profits from the Iran conflict.
Major oil companies such as BP and Shell are expecting robust financial performances, with BP anticipating exceptional results for the first quarter and Shell projecting significantly higher profits. BP will release its next financial results on Tuesday, followed by Shell on May 7.
The surge in oil prices to nearly $120 per barrel, triggered by the closure of the Strait of Hormuz, is poised to lead to a considerable hike in energy bills for UK households starting in July. Analysts from Cornwall Insight predict that the price cap could escalate to £1,837 annually, compared to the current level of £1,641 per year, which will be announced by Ofgem by May 27.
Households relying on heating oil and LPG energy sources have already faced soaring energy costs, prompting government intervention to provide assistance. The End Fuel Poverty Coalition expressed concerns over the energy system’s failure to support the people it serves, especially as global events like the Russia-Ukraine conflict and the Iran situation exacerbate the financial burden on consumers.
Calls for a shift towards renewable energy sources, home upgrades with solar power and heat pumps, and financial aid for those most in need have been emphasized to mitigate the impact of rising energy prices. Researchers from the End Fuel Poverty Coalition analyzed the profits of 30 energy companies, revealing a slight decrease from the £27.6 billion recorded during the peak of the Ukraine conflict in 2023.
