Warmer winter hits profits at British Gas owner

Warmer weather in the UK meant more British Gas customers turned down their heating in 2025, contributing to a slump in profits at its owner Centrica.

British Gas customers switching to cheaper fixed-rate energy tariffs from variable rates were also blamed for the £80m hit to profits at the UK's oldest energy supplier.

Overall, operating profits fell to £814m for Centrica last year, down on £1.55bn in 2024.

Despite the shift, chief executive Chris O'Shea said British Gas had grown its customer base for the first time in more than a decade.

British Gas customers increased to 7.5 million in the UK, after absorbing the customer base of Rebel Energy and Tomato Energy when those energy providers went bust.

"The environment has been challenging, and performance has varied across the business," Mr O'Shea said.

The UK had its warmest and sunniest year on record in 2025, according to the Met Office, with an average temperature of 10.09C.

Shares in Centrica were trading down more than 7% in London on Thursday morning.