British Gas parent company boss ‘happy to pay more’ tax for bills to go down | Money News

The boss of British Gas’s parent company has said he would be happy to pay more tax as he called for levies on bills to be removed and transferred to general taxation.

Centrica chief executive Chris O’Shea told Sky News, “I personally would be happy to pay more. I think that’s fair.”

Mr O’Shea’s pay package was £4.3m last year.

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On Tuesday, he called for those with the “broadest shoulders” to pay more, as he said the cost of decarbonising should be paid from the general tax pot, rather than levies being added to bills.

Removing those levies, which fund things like national grid improvements, would take about £200 off people’s bills, Mr O’Shea said.

It would also be more progressive, he said, as wealthier people would pay more tax, rather than every household facing the same levies regardless of income.

Energy regulator Ofgem increased the energy price cap on Friday, not because of energy costs, but because of policy costs such as the construction of Sizewell C nuclear power station.

For every pound spent on energy bills, 13.4 pence goes on policy costs, 22.6 pence goes to infrastructure costs and 11 pence goes to operating costs. Just 39.3 pence pays for energy. Ofgem said.

Ofgem criticism

Mr O’Shea was critical of the regulator, saying, “They are focused more on micromanagement than on growth”.

In response, a spokesperson for Ofgem said: “Our regulation has delivered results: customer satisfaction is at record highs, from a low of 66% in 2022 and the sector is financially stronger with suppliers now holding around £7.5bn in assets protecting households from the cost of supplier failures.

“The government is already reviewing our remit and powers to ensure we remain the best possible regulator for consumers as the energy system evolves. We welcome this review and have already made clear our intent to move to more outcome-based regulation and work with suppliers as we move forward.”