The chief executive of Centrica, the parent company of British Gas, received over £4.7 million in total compensation last year despite a decline in profits. Chris O’Shea’s salary of more than £1 million was supplemented by bonus payments amounting to almost £3.6 million. This significant payout comes at a time when many British Gas customers are grappling with high energy bills.
Centrica’s underlying profits dropped to £814 million in 2025 from £1.55 billion in the previous year, mainly due to factors such as warmer weather impacting British Gas operations, resulting in an £80 million loss. Additionally, a shift towards cheaper fixed tariff deals led to a decrease in profits in the household supply business arm, from £269 million in 2024 to £163 million.
Despite facing shareholder opposition at the annual general meeting, O’Shea’s total pay package for 2025 was £4.73 million, slightly down from £5.08 million in 2024. The company justified the bonuses stating that they were in line with market rates considering Centrica’s scale and complexity.
Carol Arrowsmith, chair of Centrica’s boardroom pay setting committee, acknowledged the company’s achievements and strategic progress in the past year. O’Shea mentioned the challenging business environment but highlighted strong operational performance and customer growth across all retail segments.
British Gas observed a 1% rise in household customer numbers in the UK and Ireland, reaching 7.96 million, with the UK accounting for 7.5 million. The company’s position as the largest household energy supplier in the UK was overtaken by Octopus Energy last year.
Industry analysts predict a 7% reduction in Ofgem’s energy price cap in the upcoming quarterly adjustment, potentially lowering the typical dual fuel household bill by £117 to £1,641 annually from April 1. Chancellor Rachel Reeves had announced a £150 reduction in the average household bill by eliminating the Energy Company Obligation scheme in the last November Budget.
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