British Gas earnings have soared by almost 900 percent thanks in part to a price cap boost of around £500million. Energy giant Centrica, which owns the company, said underlying earnings at its gas and electricity supply arm leapt 889 percent to £969million in the six months to June 30 from £98million a year earlier.

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It said the result was buoyed by Ofgem’s price cap in the first half of the year when customers saw their bills limited to £2,500 a year under the Energy Price Guarantee. This allowed it to recoup losses seen a year earlier to the tune of about £500million.

Overall, Centrica saw a £6.5billion operating profit in the first six months of the year against operating losses of £1.1billion a year earlier. On an underlying basis, operating profits rose to £2.1billion from £1.3billion a year ago.

Wednesday’s update comes at a sensitive time with households and businesses continuing to face high energy bills and widespread cost pressures.

Prime Minister Rishi Sunak insisted energy companies’ windfall profits are being taxed to help consumers. He told broadcasters: “We are now taxing these windfall profits of energy companies and we are using that money to help us pay around half of a typical family’s energy bill, particularly over the last winter.”

But Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said the profits were another sign of Britain’s broken energy system.

He added: “At a time when household energy debt is spiralling to record levels and energy bills remain double what they were just a few years ago, the profits posted will be greeted with disbelief by those struggling through the crisis.”

Small business owners have reacted angrily to the news of the bumper earnings.

Rachel Harvey, owner of Cleethorpes-based pottery painting studio The Paint Box told Express.co.uk she felt ashamed to be a British Gas customer.

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She said: “What kind of society are we living in where people are relying on food banks, donations and yet they are still struggling because of rising costs? Then we have the biggest companies in the world announcing record-breaking profits and still putting their prices up. It makes me feel sick to my stomach.

“Small businesses going under, families facing impossible choices over food or heat, the elderly in cold homes. I’m ashamed to be a customer of British Gas right now.”

Lewis Shaw, owner of Shaw Financial Services in Mansfield said every penny of Centrica’s extra profits should be taxed and returned to consumers.

He said: “This is nothing short of a kick in the guts for millions of people that have been taken to the brink of poverty by soaring energy prices.”

Mr Shaw added: “Every penny of those additional profits should be taxed from Centrica and given back to the consumers.

“There’s a cost of living crisis for those who work for their income and a bumper payday for those charged with screwing hardworking Brits. It’s nothing short of daylight robbery.”

Last year, Centrica more than tripled its adjusted operating profit, which reached £3.3billion in 2022 amid turbulence in global energy markets.

Big swings in energy prices helped the company’s energy marketing and trading division, which made £1.4billion in profit during the year, a 1,900 percent increase on the year before.

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