The head of the company that owns British Gas, Centrica, received over £4.7 million in total compensation last year, including salary and perks, despite a decrease in profits. Chief executive Chris O’Shea’s salary of more than £1 million was supplemented by nearly £3.6 million in bonuses. This occurred as many British Gas customers are grappling with high energy bills.
Despite Centrica’s underlying profits dropping to £814 million in 2025 from £1.55 billion in 2024, Mr. O’Shea’s remuneration remained substantial. Factors contributing to the profit decline included a decrease in British Gas profits due to milder weather impacting energy consumption and a shift towards cheaper fixed tariff deals by consumers.
In 2025, Mr. O’Shea’s total pay amounted to £4.73 million, slightly lower than the previous year’s £5.08 million. Notably, a significant portion of his earnings came from bonuses, despite facing opposition from shareholders at the previous annual general meeting regarding executive pay.
The company defended the compensation adjustments, citing competitive market rates and the company’s performance. Mr. O’Shea acknowledged the challenging business environment but highlighted the operational achievements and customer growth. British Gas experienced a slight increase in household customer numbers, reaching 7.96 million, with gains from acquired customer bases offsetting minor customer losses.
Industry analysts predict a 7% reduction in the energy price cap by regulator Ofgem, potentially leading to savings for households. This follows a government decision to cut £150 from average energy bills by eliminating the Energy Company Obligation scheme.