UK

Big energy profits lead to new calls for warmer homes, a social tariff, public ownership

NOVEMBER 13, 2024

Energy giant SSE has declared a big pretax profit rise of 26 percent, climbing to £714.5m, up from £565.2m in the same period last year.

The announcement has outraged fuel poverty campaigners. Warm This Winter spokesperson Caroline Simpson asked: “How is it fair that energy companies keep raking in millions in profits? We know SSE made over  £7 billion since the start of the energy crisis whilst there are 6.5 million in fuel poverty and all of us are paying 60 percent more on our energy bills than we did three years ago. 

“The public knows the only way the UK will bring down bills in the long-term is by harnessing our renewable energy sources and properly investing in home insulation to free us from volatile fossil fuels for good.

“And they are angry that the industry continues to make obscene sums whilst so many people are scared to switch the heating on. That’s why three quarters support a social tariff for older and disabled people,  funded by the wider energy industry because let’s face it, they are the ones that can afford it.”

Last May, SSE announced a colossal profit of £2 billion over the last year. Unite General Secretary Sharon Graham said at the time: “SSE’s outrageous profits today show that profiteering is absolutely rampant in the UK economy when working people are still struggling to pay the mortgage and put food on the table.

“Unite’s latest profiteering report calls out this disgraceful practice for all to see and shows how utility companies are siphoning money away from workers and straight into the pockets of shareholders and directors.

“It is about time energy production was brought back into public ownership so that costs can be kept down for British manufacturers and costumers ensuring a fair deal for all.”

National Grid

Last week, National Grid posted a 14 percent increase in first-half underlying profits. Sharon Graham again called for public ownership: “The profits raked in by the National Grid lay bare Britain’s broken energy system. Energy profiteers like National Grid are extracting cash for overseas’ shareholders through ever more expensive bills. It is time our energy infrastructure was brought back into public ownership so that the British people and economy benefit rather than foreign wealth funds.”

Warm This Winter spokesperson Caroline Simpson said: “Everyone is fed up with being ripped off by the energy sector and yet again we see another arm of this profiteering industry reporting massive profits.  

“Bill payers have spoken, they want to see our leaky homes upgraded and they want us freed from being held to ransom by volatile oil and gas prices by switching to renewable energy which would ultimately bring down bills for good. 

“People also want to see greedy companies, which include National Grid, that have made over £450 billion in profits since the start of the energy crisis foot the bill for a social tariff, helping older and disabled people with their energy bills this winter.” 

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented: “National Grid is one of the private monopolies that add to our standing charges through their role in the energy system. We need reform of these charges so that we are no longer bankrolling companies to make excess profits while people shiver in cold damp homes.

“As well as immediate reforms to our bills, we also need to see this couple with long term investment by the Government in a comprehensive Warm Homes Plan to bring down our energy consumption in a safe and managed way.”

A huge majority of the public back the Government providing more support to vulnerable households with their energy bills, according to an online survey conducted earlier last month by Opinium. Following the Chancellor’s removal of the Winter Fuel Payment from most pensioners, three quarters of the public now back the Government bringing in a social tariff to provide a discount on energy bills to those in greatest need of help.

Image: https://www.flickr.com/photos/cj_collective/6992454230 climatejusticecollective Licence: Attribution 2.0 Generic Deed CC BY 2.0