FUEL poverty campaigners demanded proper taxation on greedy energy companies today as firms already banking £240 billion in the past three years are expected to announce more “obscene” profits this week.
Iberdrola, the owner of Scottish Power, announced today that its net profit has risen to £3.47bn within the first six months of the year, jumping by 64 per cent.
Norwegian oil and gas producer Equinor announced pre-tax earnings of £5.8bn.
Centrica is predicted to report a billion-pound profit in its half-year results later today, while EDF and Drax will follow with their updates tomorrow.
The profits come as 6.1 million households across Britain continue to struggle with energy costs and rising debt.
About 15 per cent of the public are in energy debt, and one in five have been forced to turn to illegal money lending sources to make ends meet, according to Warm this Winter.
End Fuel Poverty Coalition co-ordinator Simon Francis highlighted that Iberdrola-owned Scottish Power has a track record of charging the highest exit fees on its fixed tariffs.
He added that Scottish Power Energy Networks has made billions due to surging electricity standing charges which are 147 per cent higher than pre-energy crisis levels.
"Iberdrola has amassed tens of billions of pounds in profit in the last few years, while Britain’s broken energy system has trapped households in cold, damp homes,” he said.
"It’s time to tax these energy giants’ profits fairly to enable the new government to support homes in fuel poverty.”
He also highlighted that profit-hungry Equinor is trying to “keep the country hooked" by lobbying the Scottish government to permit a new gas-fired power station to open in Peterhead.
“This will do nothing to lower energy bills as electricity generated by gas power stations is the most expensive type of electricity and will keep all of our bills high,” he said.
Warm This Winter spokeswoman Fiona Waters said the profits were obscene and echoed demands for proper taxation.
She added: “In fact it’s hard to grasp the mind-boggling sums involved but it equates to global energy fat-cat corporations making a billion pounds each week under the last government since the energy crisis started three years ago.”
