British Gas owner to scrap standard variable tariffs

British Gas owner Centrica is scrapping standard gas and electricity tariffs (SVT) for new customers ahead of Government plans to impose a price cap on the costly energy products.

The Big Six energy supplier also vowed to introduce simpler bills and a new fixed-term default tariff for customers who do not shop around for the best deal once their contract finishes.

It said the reforms would be enforced by the end of March.

It came as the energy giant called on the Government and Ofgem to engage over the reforms to help create a fairer market without price controls.

Centrica urged the energy watchdog to follow its lead and remove SVTs from the market to encourage more customers to switch tariffs.

While group chief executive Iain Conn recognised the need for the market to improve, he said price caps would set the industry back.

He said: “Today we have set out the unilateral actions we will take to improve the UK energy market for our customers.

“This starts with the withdrawal of the standard variable tariff which contributes to lower levels of customer engagement.

“We also believe that further measures by Ofgem and the Government are required so that together we can create a market that works for everyone, where there is improved transparency and a fairer allocation of costs currently included in the energy bill.

“We have long advocated that the end of the standard variable tariff is the best way to encourage customers to shop around for the best energy deal.”