Ofgem admits failings over energy regulation, and warns Ukraine conflict would push bills higher – as it happened

Rolling coverage of the latest economic and financial news

• Energy regulator admits financial regulation of suppliers should have been tougher
• Ofgem CEO: Retail sector needs to be more resilient
• Lost credit balances at failed suppliers could reach 200m
• Ukraine invasion would drive up energy bills again in October
• Nils Pratley: We all pay for lost credit balances

Earlier:

• BP underlying profits surge to $4bn in last quarter, up from $115m last year
• Oil giant makes annual underlying profits of $12.8bn, highest in eight years

BP has delivered a strong set of results this morning, says Stuart Lamont, investment manager at Brewin Dolphin:

Buoyed by the rising oil price, BP has swung to a substantial profit, cut debt, invested in its business, and upped its shareholder distributions.

Management is striking a positive tone on its progress as BP transitions towards net zero and the company looks to be in a strong position to deliver on its commitments building up to 2030."

Given that the oil price is currently standing at around $92, it is of little surprise that the headline numbers have exceeded expectations. BP's own projections are based on a price of $60, let alone the cash balance point" of $42 which the company previously identified.

As such, attributable profit for the year rose to $7.6bn from a previous 20.3bn loss, and the underlying replacement cost profit came in at $12.8bn versus a loss last year of $5.7bn. Indeed, this figure exceeds the $10bn achieved in 2019.

These profits are a slap in the face to the millions of people dreading their next energy bill. BP and Shell are raking in billions from the gas price crisis while enjoying one of the most favourable tax regimes in the world for offshore drillers. And these are the same companies responsible for pushing our world closer to catastrophic climate change. This isn't right.

The Chancellor's response so far has been to protect Big Oil's profits while offering completely inadequate support for vulnerable households. People will be wondering whose interests he's serving.