Amidst the ongoing energy crisis in the UK, billionaire Daniel Kretinsky’s gas power plants have seen a significant increase in profits. His South Humber Bank (SHB) power station near Hull brought in £141 million in pre-tax profit last year, following a period of high commodity prices due to the conflict in Ukraine. This power station, owned by Kretinsky’s EP UK Investments, has the capacity to power around 1.2 million homes, similar to the size of Greater Manchester. In 2022, the power station made £143 million in profit, a stark comparison to the £26 million loss in 2021.
Kretinsky, with a net worth of £6 billion, has made a name for himself in the energy industry, with assets across various countries including the UK. His deal to buy Royal Mail is nearing finalization, with EP Group agreeing to purchase the postal service’s parent company earlier this year. The acquisition is currently under review by the Government.
Although gas-fired power stations have faced scrutiny for their profits during a time of rising energy prices, they were not subject to the windfall tax introduced in 2022. This tax was aimed at offsetting the increasing costs of household energy bills. Despite this, many power stations, including Kretinsky’s, have reported substantial revenue and profit growth.
In addition to the SHB power station, EP UK Investments also owns a gas power plant near Plymouth, which made £129 million in profit last year. With sites in Northern Ireland and the Republic of Ireland as well, Kretinsky’s investments in the energy sector have proven to be lucrative.
Household energy bills are set to rise to £1,736 in January, a 1.2% increase from current levels, according to Ofgem. While this is lower than the peak of over £4,000 earlier in 2023, it remains significantly higher than pre-crisis levels. Despite these price increases, EP UK Investments declined to provide any comments on the situation.
As the energy crisis continues to impact consumers across the UK, Kretinsky’s success in the gas power sector raises questions about the profitability of such ventures during times of economic uncertainty. The balance between generating profits and ensuring affordable energy for households remains a critical issue that policymakers and industry leaders will need to address in the coming months.
