British Gas plans expensive standard variable tariffs scrapNovember 21st, 2017
According to latest UK energy industry news British Gas will scrap its expensive standard variable tariffs by April for new customers, which will lower average bills. Similar moves have previously been announced by EON and Scottish Power, signalling the beginning of the end of controversial energy bills hopefully.
British Gas has also said it would do more to persuade customers currently on Standard Variable Tariffs to move to cheaper deals. Customers already on fixed-term contracts who fail to opt for a replacement will be put on a default tariff.
They also said it was to remove tariffs without an end date to new customers from the spring – offering a series of fixed deals instead.
Earlier this year, draft legislation designed to lower the cost of energy bills was published by the government. The legislation will give energy regulator Ofgem the power to cap default tariffs.
The Government have been moving to introduce price caps on the variable tariffs – a default tariff that has no end date and is currently used by 50% of UK homes. Charges have been described by the Prime Minister as a ‘rip-off’ with a recent inquiry by a regulator finding UK households were over-paying by an estimated £1.4 bn annually. British Gas currently has five million standard variable tariffs customers.
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