Centrica CEO Chris O'Shea Highlights Challenges and Commitments Amid North Sea Energy Transition
Centrica CEO Chris O'Shea has warned that Scotland is facing an energy jobs squeeze as drilling in the North Sea declines and the transition to green energy accelerates. Several companies, including Harbour Energy, have announced job cuts, and the Port of Aberdeen plans to reduce roles amid falling North Sea activity.
Centrica has ceased exploring for oil and gas in the North Sea. O'Shea highlighted that domestically produced gas can be cheaper and cleaner than imports but emphasized that the pace of the energy transition is crucial. Reflecting on his upbringing in Fife, near coal mines, he expressed a desire to avoid a long-term unemployment scenario as previously experienced in the region.
During the Covid-19 peak in 2020, O'Shea made the decision to cut around 5,000 roles to preserve approximately 20,000 jobs at Centrica, which later hired 1,700 apprentices. The company is committed to continuing this growth by taking on at least one apprentice every day throughout this decade.
O'Shea criticized poor regulation for energy supplier failures and urged Ofgem to ensure companies maintain sufficient cash reserves to manage risks. Ofgem noted that the sector currently holds about £7.5 billion in assets, enhancing consumer protections.
Regarding his remuneration, O'Shea's 2023 salary and bonuses reportedly reached £8.2 million. He clarified that dividends largely come from other Centrica businesses, and energy retail profits are capped at 2.4% of revenue.
On the topic of prepayment meters, he stated that British Gas no longer employs force-fitting and believes regulators should differentiate between customers who cannot pay and those who refuse, providing guidance on how to handle non-payers.
Finally, O'Shea welcomed potential Budget relief measures such as cutting the 5% VAT on energy but underscored that any relief must be properly funded.
