The head of Centrica (LON:CNA), British Gas’s parent company, was given a pay increase of almost 40 percent last year – enough to pay the heating and lighting bills for nearly 4,000 customers on the company’s standard tariff.
The pay package was awarded to Iain Conn, who received a total pay package worth nearly £4.2 million for 2016. This move was described as “astronomical” and a “kick in the teeth” by the Labour party, for those millions in the UK living in fuel poverty.
After five of the six major energy companies have hiked prices, government intervention is becoming more and more likely. The company that did not increase prices was British Gas, which froze them until August. Experts believe prices will increase in the second half of 2017 due to rising cost pressures.
“When I joined the company I was asked to take a reduction in the top-end of what I could earn and also asked to take a reduction in my base pay and make sure 80 percent of it was performance-related. I believe the company is very responsible in this area.” Conn told journalists last month.
Rebecca Long-Bailey, the shadow energy secretary, said: “Over 4 million people are living in fuel poverty across Britain so the announcement today of astronomical pay increases for certain energy company CEO’s must feel like a kick in the teeth to those families who will sit shivering tonight because they cannot afford to put on the heating. This is another clear example of the Tories’ rigged economy.”
The large pay increase was also seen as largely controversial by Switched On, a campaign to get more council-run energy companies.
“These ridiculous pay packets are the real reason for extortionate energy bills that leave families struggling to heat their homes. Enough of these rip-off merchants.” said Emma Hughes from the campaign.