Warmer Weather and Tariff Shifts Impact Centrica's Profits
In 2025, warmer weather across the UK led many British Gas customers to reduce their heating usage, which contributed to a decline in profits for Centrica, the owner of British Gas.
Additionally, a significant number of British Gas customers switched from variable-rate energy tariffs to cheaper fixed-rate plans, a factor also linked to an £80 million reduction in profits at the UK's oldest energy supplier.
Overall, Centrica's operating profits decreased to £814 million last year, down from £1.55 billion in 2024.
Customer Base Growth Despite Challenges
Despite these financial impacts, Centrica's chief executive, Chris O'Shea, noted that British Gas expanded its customer base for the first time in over ten years.
The number of British Gas customers in the UK rose to 7.5 million, partly due to the acquisition of customers from Rebel Energy and Tomato Energy after those companies ceased operations.
"The environment has been challenging, and performance has varied across the business," Mr O'Shea said.
Record Warmth in the UK
The Met Office reported that 2025 was the warmest and sunniest year on record in the UK, with an average temperature of 10.09°C.
Following the profit announcement, Centrica's shares fell by more than 7% in London trading on Thursday morning.
