Centrica PLC (LSE:CNA) owned British Gas said it will donate 10% of its profits to customers who are facing skyrocketing energy bills and rising living costs.
Averaging £750 per household, the grants are expected to benefit thousands of customers in need, with the annual energy bill price cap expected to be hiked near to £4,000 tomorrow and top £4,500 next year.
In its latest half-year results, parent company Centrica reported underlying profits of £1.66bn and reinstated its dividend for shareholders for the first time since the pandemic, on the back of soaring energy prices.
As one of the largest energy suppliers in the UK, the company will invest the money in an existing support fund that will increase existing assistance for struggling consumers.
With the price cap on energy expected to be raised on Friday, Centrica, parent company of British Gas Energy noted in a statement there will be an immediate £12mln donation to the fund, which is double the previous contribution and over 10% of first half pre-tax profits.
"The current cost of living crisis requires all of us to think differently," said Chris O’Shea, chief executive, in a statement.
"As a responsible business we want to do more to support our customers during this difficult time. Committing 10% of our profits for the duration of the energy crisis will mean we can target help at those who need it the most."
Based on the price cap increased that will be confirmed on Friday, energy prices are expected to rise from October across England, Scotland, and Wales, with energy prices are expected to rise further in January and April next year.
October will also see close to 30mln households start to receive energy bill discounts, with the UK government offering a £400 discount.