COMMENT: Centrica and Shell profits - carrots instead of sticks needed to progress low-carbon projects

Simon Tucker, Global Head of Energy, Utilities & Resources at Infosys Consulting:

“Centrica and Shell have both reported bumper profits, despite wholesale oil and gas prices coming down. Centrica profits are at a record high, although this will likely be a one-off due to Ofgem’s price cap increase to compensate suppliers when it was too low previously.  

“What’s crucial is the big players direct these profits towards accelerating the modernisation of energy infrastructure. To do this, we need to focus on carrots instead of sticks. It’s fair to take some tax - but we also need incentives so we can get the most out of low-carbon projects.

“If renewable energy like wind and solar is being produced, it must be used. Excess profits can be directed towards infrastructure which supports better connectively – like storage, and networks, enabling more homes to use clean energy. There must also be greater investment in the mass deployment of low-carbon, domestic energy alternatives like mini nuclear reactors and community renewables, which can be deployed quickly and at low cost.”

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