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Centrica plans gas sell-off as profits drop over 50%

The owner of British Gas announces plans to sell gas from storage to reduce ongoing losses.

July 24, 2025 at 02:44 PM

Fears UK gas stockpile to drop for winter as British Gas owner plans sell-off

Centrica announces plans to sell its stored gas to cut losses amid declining profits.

UK gas stockpile fears grow as Centrica plans sell-off

Centrica, the owner of British Gas, intends to sell its stored gas at the North Sea Rough storage facility instead of replenishing supplies before winter. The company reported a loss of £26 million in the first half of the year, leading to a steep decline in overall profits, which halved to around £500 million compared to the same period last year. Chief Executive Chris O’Shea criticized regulators for allowing rival Octopus Energy to continue acquiring customers despite failures to meet financial stability requirements. The lack of support for the Rough facility and ongoing financial challenges illustrate the tough conditions facing the energy sector as wholesale prices fall and weather conditions remain mild.

Key Takeaways

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Centrica sells stored gas to reduce financial losses.

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The Rough storage facility reported a £26 million loss this year.

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Overall profits at Centrica dropped to £500 million from over £1 billion.

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Regulatory tensions exist between Centrica and Octopus Energy.

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Changes in weather and prices impact energy profitability.

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Competition in the energy market is shifting rapidly.

"This year has seen more challenging conditions for British Gas."

Centrica's chief executive acknowledges the tough market environment.

"It is outrageous that Ofgem has not stopped Octopus from acquiring new customers."

O'Shea's strong remarks highlight regulatory concerns in the energy market.

"Centrica's losses at Rough are not sustainable for the future."

This statement emphasizes the need for financial solutions in the energy sector.

"We need a resolution to inject gas into storage for this winter."

Centrica's urgency signals a pressing concern for winter preparedness.

The difficulties Centrica faces reflect larger trends in the energy market, where economic pressures and regulatory challenges are reshaping the industry. With profits down and competition intensifying, especially from rivals like Octopus, Centrica's strategy to sell off gas could affect supply levels during the winter months. As households prepare for the cold season, the government and stakeholders must consider the implications of dwindling gas stockpiles and financial risks associated with energy providers. O’Shea's harsh words towards Octopus reveal underlying tensions in the market, highlighting the fierce competition for consumer trust and market share during a challenging time.

Highlights

Centrica's decision to sell gas reflects deep financial troubles.
The industry's stability is under threat as profits fall sharply.
Octopus Energy faces criticism while Centrica fights for relevance.
Regulatory challenges intensify competition among energy leaders.

Potential risks from dwindling gas stockpile and competition

Centrica's plans to sell off stored gas raise concerns about supply shortages in the winter. These financial losses highlight instability within the energy market and could lead to public backlash against energy providers, especially if consumers face higher costs during colder months. Moreover, regulatory scrutiny of competitors like Octopus Energy complicates the landscape.

The future of energy storage in the UK remains uncertain as industry dynamics evolve.

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centrica british gas octopus energy energy market gas storage energy business politics

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