The head of the company that owns British Gas, Centrica, received over £4.7 million in salary and benefits last year despite a drop in profits. Chief executive Chris O’Shea’s salary of more than £1 million was supplemented by nearly £3.6 million in bonuses. This comes at a time when many British Gas customers are facing high energy bills.
Despite Centrica’s underlying profits falling to £814 million in 2025 from £1.55 billion in 2024, Mr. O’Shea received substantial payouts. Factors contributing to the profit decline included warmer weather impacting British Gas operations, resulting in an £80 million loss due to reduced heating usage by customers.
Additionally, a shift towards cheaper fixed tariff deals by households led to a decrease in profits from supplying households, dropping to £163 million from £269 million in 2024. Mr. O’Shea’s total pay for 2025 was £4.73 million, down from £5.08 million the previous year, as per Centrica’s annual report.
Despite facing shareholder dissent at the previous annual general meeting, with nearly 40% opposing the board’s pay plans, Mr. O’Shea’s pay package continues to draw attention. His salary is set to rise by 3% to £1.13 million annually from April 1, with the wider workforce seeing average pay increases of 3% to 4%.
In 2025, Mr. O’Shea’s pay ratio compared to the average employee salary at Centrica was 71:1. The company’s boardroom pay setting committee chair, Carol Arrowsmith, defended the remuneration adjustments, citing achieved results and strategic milestones.
Commenting on the challenging business environment, Mr. O’Shea acknowledged varied performance across the company but emphasized strong operational performance and customer growth. British Gas observed a 1% increase in UK and Ireland household customers, reaching 7.96 million, with Octopus Energy surpassing British Gas as the largest household energy supplier in the UK.
Industry experts predict a 7% reduction in Ofgem’s energy price cap, potentially saving a typical dual-fuel household £117 annually from April 1. This follows Chancellor Rachel Reeves’ announcement in the last Budget to reduce average household bills by £150 by eliminating the Energy Company Obligation scheme.