Centrica's Earnings Halve Amidst Warm Weather and Customer Switches

Centrica, owner of Centrica===British Gas, reported a nearly 50% decline in annual underlying operating profits to £814 million in 2025, down from £1.55 billion in 2024. This significant drop was primarily attributed to an £80 million impact from warmer weather, which reduced demand for heating, and customers switching to cheaper fixed-price energy deals. Earnings in its household energy supply business, Centrica===British Gas, slumped by 39% to £163 million. Despite these financial challenges, Centrica, under CEO Chris O Shea, achieved customer growth across its retail arm for the first time in over a decade, partly by acquiring customers from failed suppliers Rebel Energy and Tomato Energy. The company also announced a pause in share buybacks to prioritize its investment program, including a £1.3 billion investment for a 15% stake in the Sizewell C nuclear power station. This news led to an 8% fall in Centrica's shares. Separately, Octopus Energy recently surpassed Centrica===British Gas as the UK's largest household energy supplier. The broader UK energy market is also anticipating a 7% reduction in United Kingdom===Ofgem's energy price cap and a £150 cut from average household bills due to the scrapping of the Energy Company Obligation scheme.