British Gas boss cashes in on £56million tax refund as Britons battle cost of living crisis

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The Conservative government faces growing pressure to hit energy giants with a second windfall tax as Britons struggle to power their homes during the coronavirus pandemic. energy crisis

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Last year, British Gas owner Centrica took a £56million tax cut on its North Sea operations.

The industry giant was able to use losses from previous years in its UK drilling arm to offset what it did in the division in 2021.

But analysis by climate group Uplift found that over the same period Centrica had paid Norway £35m in tax.

It comes amid growing pressure on the government to slap the energy giants with a second windfall tax to help households ravaged by the cost of living.

Centrica's profits quintupled to £1.3bn in the first six months of this year, boosted by record high wholesale gas prices.

The profits of its subsidiary British Gas have fallen.

Centrica Energy, owner of British Gas, has taken a £56m tax rebate as the gas giants are set to face a second windfall tax (

Picture:

Evening Gazette)

Tessa Khan, international climate change lawyer and founder of Uplift, said: "It beggars belief that Centrica is essentially absorbing grants from the UK in the form of tax refunds while millions of people cannot pay their energy bills.

"The UK is one of the most profitable countries in the world for oil and gas companies.

"Even with the exceptional tax, they still pay less here than the world average."

Centrica said losses in previous years were related to its Spirit branch.

A spokesperson added that Centrica as a whole is expected to pay around £600m from the new windfall tax over the next two years.

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