The head of Centrica, the parent company of British Gas, received over £4.7 million in total compensation last year despite a decline in profits. Chief executive Chris O’Shea’s salary of more than £1 million was supplemented by nearly £3.6 million in bonuses. This generous pay package contrasts with the company’s underlying profits dropping to £814 million in 2025 from £1.55 billion in 2024.
Centrica’s British Gas arm faced challenges, with mild weather resulting in an £80 million loss as customers reduced their heating usage. The company also experienced a decrease in profits from supplying households, with earnings dropping to £163 million from £269 million in 2024 due to more customers switching to cheaper fixed tariff deals.
Despite facing shareholder disapproval at the previous year’s annual general meeting, Mr. O’Shea’s pay package for 2025 stood at £4.73 million, down from £5.08 million in 2024. The report also revealed a 3% increase in Mr. O’Shea’s annual salary to £1.13 million starting April 1, with the wider workforce set to receive average pay rises of 3% to 4%.
Carol Arrowsmith, the chair of Centrica’s boardroom pay setting committee, defended the pay adjustments, citing the company’s performance and strategic achievements. Mr. O’Shea acknowledged the challenging business environment but highlighted strong operational performance and customer growth.
British Gas saw a slight rise in household customers in the UK and Ireland, reaching 7.96 million, with the UK accounting for 7.5 million customers. Additionally, British Gas was surpassed by Octopus Energy as the largest household energy supplier in the UK.
Industry experts predict a 7% reduction in the energy price cap by regulator Ofgem, translating to a potential £117 decrease for a typical dual fuel household from April 1. This forecast follows Chancellor Rachel Reeves’ announcement in the previous Budget to reduce average household bills by £150 by eliminating the Energy Company Obligation scheme.
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