(Bloomberg) -- British energy retailer Octopus Energy Ltd. posted a £161 million ($198 million) loss for last fiscal year because it absorbed costs that could have been passed on to customers.

“We could have made a profit, but now’s not the time — instead we chose to absorb £150 million of escalating costs on behalf of customers through prices and support funds, debt-forgiveness and increased service,” Chief Executive Officer Greg Jackson said in a statement.

For the year ending April 30, Octopus’s revenue doubled to £3.9 billion and its customer base grew to 3.2 million households from 2 million amid a marketing push and the migration of hundreds of thousands of customers from failed supplier Avro Energy. It’s still in the process of absorbing Bulb Energy Ltd.’s base after the government approved a takeover plan in October.

About 30 companies have exited the UK market since 2021 because of thin margins and the difficulty in passing on soaring wholesale costs that have roiled the household supply business.

The chief of regulator Ofgem voiced concerns about the sustainability of the sector in a parliamentary hearing Tuesday after Shell Plc said it’s undertaking a strategic review of domestic retail subsidiaries in the UK and European Union.

Parent company Octopus Energy Group, backed by Al Gore’s Generation Investment Management, also saw a boom in demand for Kraken Technologies, its digital management platform that’s licensed to other suppliers. Revenue from the platform grew 66% to £115 million, according to the statement.

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