Family left using candles to save electricity as energy firms make 'criminal' profits

ITV News Correspondent John Ray reports on how a pensioner is struggling with energy bills as BP reports mammoth profits for 2021

A father who resorted to lighting his home with candles amid soaring energy costs has complained energy firms making billion of pounds of profit are "absolutely criminal".

Harry Lay's family, from Cricklade in Wiltshire, receives Universal Credit and are relying food banks.

With their electricity bills almost doubling from £70 a month to £160, he said they were so desperate to save money they used candles they had at home.

Harry Lay recounts how his family was so desperate to save money on energy bills that they used candles to light their home

He told ITV News: "Initially, we had some candles at home that we weren’t using, so initially, we thought we’ll light candles in the evening, so we did do that.

"Realistically, using the candles doesn’t save you an awful lot in the long run. But because we already had them, we thought we’ll just use what we have and cut down on the amount of electricity that we're using.

"Just anything, to try and cut the cost down.

BP and Shell making billions of pounds of profit while people struggle with energy bills is "criminal", says Mr Lay

Reacting to news that BP and Shell have made massive profits in 2021, with BP announcing a £9.5 billion profit for the year, Mr Lay said: "I think it's criminal. I think it's absolutely criminal.

"I think the government need to step in and they need to regulate this."

He added: "It's just corporate greed, ultimately."

Alongside its results, BP announced plans to boost its spending on low-carbon and renewable energy.

Chief executive Bernard Looney said: “2021 shows BP doing what we said we would – performing while transforming.

“We’ve strengthened the balance sheet and grown returns, we’re delivering distributions to shareholders with 4.15 billion US dollars of buybacks announced and the dividend increased, and we’re investing for the future.”

Mr Lay is lost for words as he is asked about his reaction to reports of another potential energy price cap rise in autumn

Reacting to reports of another possible price cap rise later this year, Mr Lay said: "What do you say to that?

"I know it's coming, I know it's going to happen.

"I think the government need to sort their priorities out and really look at what matters."

He branded Rishi Sunak's plan to give struggling households a £200 loan to help with energy costs for the year "ridiculous" and "insulting".

The chancellor has said all domestic energy customers will get an up front discount on their energy bills worth £200.

Mr Lay expects his electricity bills to increase even more to £200 a month as the energy price cap rises in April.

His children have had to stop extra-curricular activities, like swimming lessons, he said. Even the idea of music lessons or extra tuition for subjects they are struggling with is off the table.

Energy regulator Ofgem boss Jonathan Brearley told MPs on the Business, Energy and Industrial Strategy Committee on Tuesday that Ofgem failed to ensure companies did not collapse.

He said the collapse of more than two dozen energy suppliers since September will cost households around £200 million and warned that bills could rise again in October.

Mr Brearley said: “When you look at the forward prices right now, there is upward pressure in prices still, so you may see a rise in October.

“But the caution I have in predicting that is that I went back and looked at what we predicted in August, and the difference between those predictions – which were that the price cap would stay roughly level – versus what we’ve seen, are huge.”

Last week, Ofgem announced the energy price cap will rise by 54% from April. It could lead to customers paying almost £700 more per year.

A decade ago, the government and Ofgem tried to push down energy bills by letting new small companies come in to encourage competition.

But many of the new companies have now gone out of business in recent months, squeezed by high wholesale gas prices.

Mr Brearley said: “There was a clear ambition to diversify supply. I think, frankly, that was not just an Ofgem ambition, that was an ambition that was shared with the Government at the time.

“There was a time with a large number of people coming into the market, because Ofgem’s focus really was on allowing diversification.

“With hindsight we would have done something differently.”