The CEO of Centrica, the parent company of British Gas, received a total compensation package exceeding £4.7 million in the previous year, despite a decline in profits. Chief executive Chris O’Shea’s salary of over £1 million was supplemented by nearly £3.6 million in bonuses. This comes as British Gas customers grapple with high energy bills.
The substantial payouts to Mr. O’Shea were granted even as Centrica reported a drop in underlying profits to £814 million in the last fiscal year, down from £1.55 billion in 2024. Factors contributing to this decline included milder weather impacting British Gas operations, resulting in an £80 million loss due to reduced heating usage by customers.
Additionally, a shift towards more affordable fixed tariff deals by households led to a decrease in profits within the residential supply sector, dropping to £163 million from £269 million in the previous year. Despite a shareholder revolt at the previous annual general meeting, where nearly 40% opposed the board’s pay structure, Mr. O’Shea’s total pay for 2025 stood at £4.73 million, down from £5.08 million in 2024.
Centrica’s board defended the compensation adjustments, citing the company’s performance and strategic achievements. Mr. O’Shea acknowledged the challenging business environment but highlighted operational success and customer growth. British Gas witnessed a 1% rise in UK and Ireland household customers, reaching 7.96 million, with 91,000 customers acquired from failed suppliers Rebel Energy and Tomato Energy offsetting a slight decline in the customer base.
Despite these developments, Octopus Energy surpassed British Gas as the largest household energy supplier in the UK. Industry experts predict a 7% decrease in Ofgem’s energy price cap, potentially reducing annual bills for dual fuel households by £117 from April 1. This follows a government announcement to cut £150 from average household bills by eliminating the Energy Company Obligation scheme.
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