British Gas owner Centrica gets £56 million tax rebate from North Sea operations

The firm’s owner, Centrica, was allowed to use its losses in previous years in its North Sea drilling operations to offset profits it made there in 2021.

And according to analysis by climate group Uplift, Centrica paid Norway £35m in tax in the same period.

This follows intense pressure on the UK Government to impose energy giants with another windfall tax to help households struggling amid the cost-of-living crisis.

The rebate comes as Centrica’s profits skyrocketed to £1.3 billion in the first six months of 2022, a five-fold increase which was aided by soaring wholesale fuel prices.

This is despite a fall in profits in its British Gas division.

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Tessa Khan, a climate change lawyer and founder of Uplift, said: “It beggars belief that Centrica is essentially taking handouts from the UK in tax rebates while millions of people can’t afford their energy bills.

“The UK is one the most profitable places in the world for oil and gas companies.

“Even with the windfall tax, they still pay less here than the global average.”

The energy firm said that losses from previous years were connected to its Spirit branch of operations.

A Centrica spokesperson added that the firm was expected to pay around £600m through windfall taxes over the next couple of years.

Commenting on the rebate, Scottish Green MSP Ross Greer slated the refund as "impossible to jsutify at the best of times".

He said: "This transfer of public money to a company posting profits in the billions would be impossible to justify at the best of times. But when people are really struggling with the basics of food, shelter and heating, it's obscene. 

"While the UK Government is subsidising Centrica to the tune of £56 million, the company is handing out £59 million to its shareholders. Instead of lowering bills, the Tories are stealing from the poor to pay the rich even more. 

“If Westminster isn’t willing to do the right thing and help people during this crisis, then Scotland must be given the power to do so itself.”

Recently Keir Starmer has made fresh calls to renew the windfall tax, outlining a £29bn plan which would freeze the energy price cap at its current level of £1971 for six months from October - a move he claims would save the average household £1000.

However, the plan has been challenged by economists who have warned that it could cost the taxpayer almost as much as the furlough scheme if extended. 

Despite the raised concerns, Starmer has deflected criticism towards the UK Government and Tory leadership hopefuls, saying they had not proposed any “credible proposals” to tackle the crisis.