The chief executive of British Gas parent firm Centrica has waived his bonus for last year, saying the award “didn’t feel right” as households grapple unprecedented increases to their energy bills.

Chris O’Shea said he had decided to give up the £1.1m bonus as the household supply business reported a 44% rise in annual operating profits to £118m.

It was helped by the cold end to last winter which saw temperatures struggle to recover seasonal norms until June.

The sector has since been shocked by unprecedented increases in wholesale gas costs which they have been unable to fully pass on to customers because of the energy price cap, forcing almost 30 suppliers out of business.

Please use Chrome browser for a more accessible video player

British Gas said it had taken on 700,000 households as a result of the supplier failures and the hit it had suffered, as a result of having to find those customers energy supplies, had been partly offset by warm weather towards the end of 2021.

The company explained that the conditions had allowed it to cash in on higher prices by selling gas and electricity it had already bought in advance.

The surge in natural gas prices is due to be further reflected in the energy price cap increase due on 1 April.

Weaning UK off fossil fuels, not increasing domestic production, best way to avoid high energy bills, climate advisors say

Cost of living crisis: Thousands of renters could lose homes within months, Sky News finds

Cost of living: Poorest will suffer most if wages and prices rise to reflect surging inflation, Bank of England governor warns

It will raise the average annual cost of a dual fuel bill by almost £700.

A further hike is expected in October and the Russian invasion of Ukraine has stoked worries that a new wave of energy price rises will place even more strain on family budgets.

Centrica, which also revealed plans to pay back the £27m it had claimed from the government to furlough its staff during the COVID crisis, said it was imperative that regulation of the market was fit for this era of price volatility.

Mr O’Shea called for energy bosses to pass a “fit and proper person” test and that Ofgem should stop the practice of companies financing themselves with customer deposits.

Related posts:

Sunny weather and lockdown easing give much-needed boost to retailers Government intervenes in sale of UK chip designer Arm over national security implications House prices were rising at fastest pace since 2014 before stamp duty holiday extended Ministers to re-advertise CMA chair role in hunt for Tyrie successor Retail washout in July after end of Euros and heavy rainfall dampen sales Borrowing is falling but Sunak faces the most challenging situation for a chancellor in decades Shares in Sainsbury’s pop amid £7bn takeover speculation $1bn recovered for victims of Allen Stanford Ponzi scheme – 12 years after scam exposed COVID loan scheme default estimates add £21bn to record 2020/21 borrowing Bosses plead for rent support as pandemic support packages unwind Bezos-backed logistics start-up Beacon lands £37m funding boost   Tesco boss warns worst of food price rises ‘yet to come’