Energy firms post billions in profits as households brace for new Ofgem price cap

Major energy companies have reported billions of pounds in profits during 2026 as households across the country prepare for the next Ofgem price cap announcement.

The energy regulator is due to announce the cap covering the next three-month period on August 26, with campaigners warning households could face another increase in energy costs. New analysis from the End Fuel Poverty Coalition and campaign group Uplift estimates eight major energy companies have generated more than £6billion in profits attributable to their UK operations during 2026.

The organisations calculate the figure is equivalent to more than £200 for every household across the country.

The analysis covers BP, Centrica, Chevron, Equinor, ExxonMobil, Iberdrola, Shell and TotalEnergies and uses financial results published by the companies during the year.

However, many of the businesses operate internationally and the campaign groups have estimated the proportion of their global earnings attributable to UK operations.

Energy company profits in 2026

The latest company results include Centrica, the owner of British Gas, reporting adjusted operating profit of £497million for the first half of 2026.

Shell reported global adjusted earnings of $9.8billion for the second quarter, while Equinor reported adjusted operating income of $11.48billion.

The campaign groups estimate around £332million of Shell’s second-quarter earnings and £172million of Equinor’s operating income were attributable to UK operations.

Their analysis also attributes around £749million of Iberdrola’s second-quarter EBITDA to the UK, alongside £493million from TotalEnergies, £418million from BP, £75million from Chevron and £11million from ExxonMobil.

These figures are estimates produced by the campaign groups rather than measures of UK profit reported directly by each company.

New Ofgem price cap due this month

Ofgem reviews its energy price cap every three months and is due to announce the next level on August 26, determining the maximum rates suppliers can charge households on standard variable tariffs during the following cap period.

The price cap does not place a limit on a household’s total energy bill. The amount someone actually pays continues to depend on how much gas and electricity they use.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said households were facing the prospect of higher costs while energy companies continued to report substantial profits.

He said: “As people brace for the next price cap announcement on 26 August and a third of households are on the brink of or in energy debt, the energy industry watches the profits climb.”

Mr Francis called on the UK Government to use taxation of energy company profits to provide greater support for households, improve the energy efficiency of homes and increase investment in domestic renewable energy.

Calls for more help with energy bills

The campaign groups argue international energy market volatility continues to expose UK households to sudden increases in wholesale costs.

Robert Palmer, deputy director of Uplift, said higher energy costs were having a direct impact on ordinary households and called for the transition towards renewable energy to be accelerated.

The campaigners also pointed to polling conducted by Survation in May, which found 74 per cent of those surveyed believed it was morally wrong for oil and gas companies to profit from an energy crisis caused by conflict with Iran.