The Great Energy Profit Lie: Why UK Suppliers Aren’t Making a Fortune

If you believe the headlines, energy suppliers are rolling in cash. Prices are up, bills are painful, and the latest financial results from energy companies show profits measured in the billions. The public outrage is understandable—when households are struggling with affordability, hearing about record earnings from energy firms feels like a slap in the face.

But here’s the problem: the media narrative is deeply misleading. The idea that UK energy suppliers are raking in money at the expense of consumers is based on a fundamental misunderstanding of how the energy market works. The reality? Most energy suppliers—the companies that actually send you your bill—operate on razor-thin margins and, in some cases, don’t make any money at all.

So if suppliers aren’t really profiting, where is all the money going? Let’s break down the biggest misunderstanding in the UK energy debate.