The head of Centrica, the parent company of British Gas, received over £4.7 million in total compensation last year, including a salary of more than £1 million and additional bonuses amounting to nearly £3.6 million. Despite a decrease in profits, CEO Chris O’Shea’s pay package raised eyebrows, especially as British Gas customers continue to face high energy bills.
Centrica’s underlying profits fell to £814 million in the past year, a significant decline from £1.55 billion in 2024. The company attributed part of this decrease to milder weather impacting its British Gas division, resulting in an £80 million loss due to reduced heating usage by customers.
Furthermore, a shift towards more cost-effective fixed tariff agreements led to a dip in profits for the household supply segment, which still managed to generate £163 million, down from £269 million in the previous year.
Despite facing backlash from shareholders over executive pay, O’Shea’s total remuneration for 2025 stood at £4.73 million, a decrease from £5.08 million in 2024. This controversy is not new, as O’Shea previously faced criticism for justifying an £8.2 million pay package in 2023.
Looking ahead, O’Shea is set to receive a 3% pay raise starting in April, bringing his annual salary to £1.13 million. The company also plans to increase average pay for its 22,000 employees by 3% to 4%.
Centrica defended the executive pay adjustments, stating they were in line with market standards considering the company’s size and complexity. O’Shea acknowledged the challenging business environment but highlighted the company’s operational performance and customer growth achievements.
Notably, British Gas observed a 1% rise in UK and Ireland household customers, reaching 7.96 million, with 7.5 million in the UK alone. However, Octopus Energy surpassed British Gas as the largest household energy supplier in the UK last year.
Industry forecasts suggest a potential 7% reduction in Ofgem’s energy price cap, leading to an estimated £117 decrease in the annual bill for a typical dual fuel household starting April 1. This follows the government’s decision to cut £150 from average energy bills by ending the Energy Company Obligation scheme.
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