SCOTTISH Gas owner Centrica, has seen its annual profits soar to a record high of £3.3 billion for 2022 amid rocketing energy prices that have sparked a cost-of-living crisis.

The energy supplier and producer's full-year profits are more than triple the £948m it made the year before.

Centrica’s profits have further enraged campaigners who are calling for tougher windfall taxes, lower bills and better treatment of vulnerable customers against the backdrop of the prepayment meter scandal.

The energy regulator Ofgem earlier this month launched a probe following use of debt collectors by Centrica firm British Gas to enforce court warrants over the installation of payment meters.

Concerns were raised that elderly and disabled people were being forced onto the meters and then routinely cut off from heat and power as they could not afford to top up.

The revelations resulted in Ofgem asking all suppliers to suspend forced pre-payment meter installations, telling firms to get their "house in order".

Ofgem said on Wednesday that a forced installation of energy prepayment meters only extends until the end of March.

The financial performance at British Gas and Scottish Gas itself was not as strong as its parent company. Operating profits dipped to £72m in 2022 from £118m 2021 - a 39% decline.

At the same time the company had an increase in its number of residential customers. There were 7.5 million customers, up 4% from the previous year. The government estimated that its windfall tax will raise £14bn in 2023.

The Herald: The Scottish Government plans to phase out gas and replace it with electricity. Photograph: Owen Humphreys/PA Wire.

There has been past controversy over record profits posted by energy firms BP and Shell while many struggle to make ends meet in the cost of living crisis.

The new wave of energy giant profits have led to more calls for better support for struggling consumers and for firms to pay more tax as many households struggle with rising bills.

Energy prices rose sharply in March last year after Russia invaded Ukraine, sparking concerns about global supplies. Supplies have been limited since the invasion and the subsequent sanctions imposed on the country.

The price of Brent crude oil reached nearly $128 a barrel, but has since fallen back. Gas prices also rose but have come down from their highs.

Disablity equality charity Scope said disabled people are facing devastating situations because they can't afford enough energy.

"It's obscene that energy companies continue to make massive profits," Tom Marsland, the policy manager at the charity, said.

"Life costs a lot more when you're disabled. We're being inundated with heart-breaking calls from disabled people who haven't eaten for days, who can't afford energy to charge wheelchairs and stairlifts, but are still racking up huge energy debts."

Shadow chancellor Rachel Reeves said: "The Government must bring in a proper windfall tax on oil and gas giants to stop energy prices rising in April.”

Trade union Unite hit out at “rampaging energy profiteering” and Centrica’s treatment of customers.

Liberal Democrat leader Sir Ed Davey said: “This is a betrayal for British Gas customers across the country who are struggling to keep their heating on."

TUC general secretary Paul Nowak said that the British energy market is “broken”.

“While millions of families struggle to heat their homes, firms like Centrica are raking in monster profits," he said.

Centrica, addressing the pre-payment meter concerns said protecting vulnerable customers is a priority.

The firm said it was committed to giving 10% of the operating profits of both British Gas and Scottish Gas and Irish operator Bord Gáis "to help until the current crisis is over".

It added: "We were extremely disappointed by the allegations surrounding one of our third-party contractors and their approach to pre-payment customers. We immediately took action to address this and are completing a thorough independent investigation."