British Gas price freeze is slated as ‘too little too late’
BRITISH Gas was accused yesterday of doing “too little too late” after announcing a winter price freeze for more than six million customers.
Watchdogs said the assurance from the firm should have gone much further – and accused it of still overcharging customers.
British Gas claimed a promise to keep its gas and electricity standard variable tariffs on hold until at least March offered “peace of mind” for customers.
But Claire Osborne, an energy expert at price comparison website uSwitch.com, said: “Despite the freeze, British Gas’s standard variable plan is a long way from being competitive. Although it is the lowest of the big six at £1,044 a year, it’s still £182 more expensive than the best deal on the market. Customers should shop around and look to switch to a cheaper fixed rate tariff.”
She added: “Rising wholesale energy prices aren’t going away. Despite price freezes this winter, it’s looking increasingly likely that suppliers may be set to hike prices later in 2017 – bringing bad news for many consumers.”
British Gas chief executive Mark Hodges said the firm, which also has a deal allowing energy prices to be fixed until March 2019, was “taking tangible action” to improve how the energy market works for all customers.
Its action follows last month’s winter price freeze by SSE and the remaining four big operators – EDF Energy, E.ON UK, npower, ScottishPower – may follow suit.
Business Secretary Greg Clark recently met energy bosses to discuss concerns they were abusing customer loyalty.
A report by lobby group Energy UK found the cost of supplying a home averages about £844, but families pay as much as £1,172 with some suppliers – giving profit margins of up to 28 per cent.