British Gas freezes energy prices this winter
The UK’s largest energy supplier British Gas, owned by Centrica, has frozen its standard energy prices this winter amid growing pressure to treat loyal customers more fairly.
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Wholesale gas and electricity prices in Britain have risen about 30-40% since June along with a rebound in other commodities like coal, leading to a rise in expectations of a hike in energy prices.
British Gas, which has over six million customers, made the announcement in a series of adverts in national newspapers.
The supplier said that it thanks its customers and that its standard tariff “will remain unchanged this winter”, which is understood to mean at least until the end of March 2017.
It has also launched a new product that will allow customers to fix their energy costs for the next three winters, until March 2019.
The move follows a similar announcement from rival energy suppliers SSE and Good Energy, who both confirmed they would cap household energy tariffs until April 2017 and March 2017, respectively.
British Gas’ decision also mounts pressure on the remaining “big six” energy firms Iberdrola’s Scottish Power, RWE’s npower, E.ON and EDF Energy to follow suit.
Over the past decade energy bills in Britain have doubled to about 1,200 pounds a year.
Business Secretary Greg Clark met industry representatives earlier this month after claims that energy suppliers were profiteering from loyal customers.
"Customers who are loyal to their energy supplier should be treated well, not taken for a ride, and it's high time the big companies recognised this," said Clark.
Consumer group Which? welcomed the decision but criticised the tariffs for being the most expensive on the market, advising customers to switch to a cheaper supplier altogether.
"Energy companies should be doing much more than simply freezing their prices this winter. We want them to set out what they're doing to genuinely engage with customers who are stuck on these poor-value deals" said Which? managing director of home and legal services Alex Neill.
At the Conservative Party conference earlier this year Prime Minister Theresa May also highlighted the issue of high volumes of customers on expensive standard contracts .
"It's just not right that two-thirds of energy customers are stuck on the most expensive tariffs," said May.
In the recently released Autumn Statement the chancellor said the government would look at key markets, including the retail energy market, to ensure that it is working fairly for all customers.
Centrica’s share price fell 1.57% to 207p at 0940 GMT on Thursday.