But those profits are under scrutiny from lawmakers and harsh criticism from consumers.
The average electricity bill is expected to rise 83% from current levels to £3,600 ($4,397) a year. January for millions of UK households, according to estimates from research firm Cornwall Insight released on Tuesday.
This is 7% higher than the previous estimate made in early July.
As a result, the firm expects the average family to spend more than £300 a month ($366) on electricity for their homes. And the pain will continue into the next year and beyond.
“It’s not just the level – but also the duration – of growth that makes these new projections so devastating,” Craig Lowry, principal consultant at Cornwall Insight, said in a press release.
“This level of electricity bills for households is currently showing no signs of decreasing in 2024,” he added.
activists have been raising the alarm for several months now. The Child Poverty Action Group predicts that more than half of UK households – about 15 million – will be in “fuel poverty” by January, spending more than 10% of their total income on energy.
cost of living crisis
Earlier this year, the UK government said it would introduce a 25% income tax on energy producers, expected to raise around £5bn ($6bn). The tax will help pay for a support package of around £15 billion ($18 billion), including a £400 ($488) grant for 29 million households from October.
But the grant will only ‘scratch the surface [the] problem,” Lowry said.
“Our new data shows that even increased support in October will not make much of a difference in what is likely to be an extended period of high electricity bills,” he said.
— CNN Business’ Julia Horowitz contributed her report.