 has announced its intention to freeze standard tariffs for the winter.){kind=link}
Centrica owned energy company British Gas (LON:CNA) has announced its intention to freeze standard tariffs for the winter.
This move follows that of other energy suppliers such As SEE, who have announced plans to place a cap on household energy tariffs until April of the following year. In addition, the energy provider has also launched an arrangement for customers which will allow households to fix prices for the next three consecutive winters.
British Gas chief executive Mark Hodges said that these price freezes would “help bring some peace of mind to more than six million of our customers”.
Consumer product reviewer Which? welcomed the announcement, but had reservations over standard tariffs and the concern that they were still among the most expensive available.
“Energy companies should be doing much more than simply freezing their prices this winter,” said Alex Neill, managing director of home and legal services at Which?.
“We want them to set out what they’re doing to genuinely engage with customers who are stuck on these poor-value deals.”
Since June, British wholesale gas and electricity prices have increased by about 30 and 40 percent. According to Reuters, energy bills have doubled in Britain over the last ten years to about £1,200 annually, and there has been some indication that the government may intervene should it feel prices are reaching unaffordable levels. Chancellor Philip Hammond said in his first Autumn Statement that he intended to “look carefully” at energy companies and the subsequent markets to ensure fair pricing levels.
This follows a report that was released by PWC, which revealed that some major energy companies were profiting from loyal customers and allegedly exploiting “six times” as much money.
British gas is Britain’s biggest energy supplier, with around 6 million customers. The move has placed additional pressure upon its competitors – Scottish Power, E.ON, RWE’s npower and EDF energy to inact similar measures.
Following the announcement, shares in their owner company Centrica fell by 1 percent.