UK households are preparing for increased energy bills this summer as energy companies reported profits exceeding £23.1 billion in 2025. This marks a rise from the previous year’s £22.7 billion, as per analysis by the End Fuel Poverty Coalition, excluding the impact of returns from the Iran conflict.

Major oil companies such as BP and Shell are poised to report strong financial performances, with BP announcing an “exceptional” first-quarter performance and Shell anticipating “significantly higher” profits. BP’s results are expected on Tuesday, followed by Shell’s on May 7.

The surge in oil prices, reaching nearly $120 per barrel following the closure of the Strait of Hormuz, is expected to lead to a spike in energy bills for UK households starting in July. Analysts project that the price cap could escalate to £1,837 per year, up from the current level of £1,641 set by Ofgem.

Households reliant on heating oil and LPG energy sources have already experienced steep cost increases, prompting government intervention to offer support. Simon Francis from The End Fuel Poverty Coalition criticized the energy system for failing consumers, particularly with the added strain from geopolitical events like Russia’s actions in Ukraine and the conflict in Iran.

Robert Palmer, Deputy Director at Uplift, expressed dismay over the energy companies’ profits amidst public concerns over escalating bills. He highlighted the need to transition to renewable energy sources and enhance energy efficiency to shield against price shocks and mitigate climate impact.

Research conducted by the End Fuel Poverty Coalition on 30 energy firms revealed a total profit of £23.1 billion in 2025, slightly lower than the £27.6 billion recorded in 2023 during the Ukraine conflict. The findings underscore the ongoing challenges faced by consumers amid the energy market dynamics.