The CEO of the parent company of British Gas, Centrica, received a total compensation exceeding £4.7 million last year, despite a decline in profits. Chris O’Shea’s salary of over £1 million was supplemented by nearly £3.6 million in bonuses. This comes as British Gas customers face high energy bills.
Centrica’s underlying profits dropped to £814 million in 2025 from £1.55 billion in 2024, partly due to a decrease in profits from its British Gas division. Warmer weather led to an £80 million loss as customers reduced their heating usage. Additionally, more households switched to cheaper fixed tariff deals, causing profits in the household supply business to decrease to £163 million from £269 million in 2024.
Mr. O’Shea’s total pay for 2025 amounted to £4.73 million, a decrease from £5.08 million in 2024. Despite facing a shareholder revolt at the previous annual general meeting, where nearly 40% opposed the board’s pay plans, hefty bonuses were still awarded to the company’s top executive.
Carol Arrowsmith, chair of Centrica’s boardroom pay setting committee, defended the compensation, citing the achievements and strategic progress made during the year. Mr. O’Shea justified the payouts by highlighting challenging conditions and varied performance across the business, emphasizing operational excellence and customer growth.
British Gas experienced a slight increase in household customer numbers to 7.96 million, with a gain of 91,000 customers after acquiring the customer base of failed suppliers Rebel Energy and Tomato Energy. However, British Gas was surpassed by Octopus Energy as the largest household energy supplier in the UK.
Industry analysts predict a 7% reduction in Ofgem’s energy price cap, resulting in an anticipated decrease of £117 to £1,641 annually for a typical dual fuel household from April 1. This adjustment follows Chancellor Rachel Reeves’ decision to cut £150 from the average household bill by discontinuing the Energy Company Obligation scheme.