Energy companies in the UK reported profits exceeding £23.1 billion in 2025, signaling potential higher summer bills for households. This marked an increase from £22.7 billion in 2024, as per recent analysis by the End Fuel Poverty Coalition, excluding returns from the Iran conflict.
Major oil companies like BP and Shell are anticipating robust financial performance, with BP expected to announce results on Tuesday and Shell on May 7.
Rising oil prices, reaching nearly $120 per barrel due to the closure of the Strait of Hormuz, are likely to lead to a surge in energy bills for UK homes starting this July. Analysts predict the price cap could escalate to £1,837 annually, with Ofgem set to reveal the new cap level by May 27, up from the current £1,641.
Households reliant on heating oil and LPG energy have already faced escalating costs, prompting government assistance. The End Fuel Poverty Coalition expressed concern over the impact on consumers, attributing the situation to geopolitical conflicts driving up energy prices.
Calls for renewable energy investments and home upgrades to mitigate future energy shocks and protect the environment have been emphasized. Efforts to support those facing financial challenges due to escalating energy costs are urged to alleviate the burden on the public.
Research conducted by the End Fuel Poverty Coalition on 30 energy companies revealed a decline in profits to £23.1 billion in 2025 from £27.6 billion in 2023 during the Ukraine conflict peak.