This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-15865766
The article has changed 8 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
British Gas to make changes after 'loss of trust' | British Gas to make changes after 'loss of trust' |
(about 1 hour later) | |
British Gas has said it is simplifying its tariffs after acknowledging a lack of public trust in the energy industry. | British Gas has said it is simplifying its tariffs after acknowledging a lack of public trust in the energy industry. |
Managing director Phil Bentley told the BBC his company "had not made it easy for customers". | |
As a result, he said all customers will be able to choose between two tariffs - variable and fixed - and benefit from more transparent bills. | |
Earlier this year, the regulator Ofgem told energy companies they must offer simpler tariffs. | Earlier this year, the regulator Ofgem told energy companies they must offer simpler tariffs. |
Following a comprehensive review of the UK energy market sparked by claims that energy companies were making excessive profits, Ofgem said suppliers needed to change the way they operated by next year. | Following a comprehensive review of the UK energy market sparked by claims that energy companies were making excessive profits, Ofgem said suppliers needed to change the way they operated by next year. |
Ofgem welcomed British Gas's "recognition that suppliers need an open and honest dialogue with their customers". | |
It said it would examine the company's proposals "in detail" to see how far they met its own objectives to simplify tariffs. | |
Earlier this week, E.On announced it had "pressed the reset button" on its relationship with customers, while other major energy suppliers have said they are working towards simplifying their tariffs. | |
'Complete breakdown' | 'Complete breakdown' |
Mr Bentley told the BBC that British Gas was making the changes because its customers had said they did not like the current pricing structures. | |
"We are very conscious of our social responsibility," he said. | |
He said bills were going up in part due to increasing transport costs and green levies. | |
He also admitted that British Gas had offered cheap deals as loss leaders in order to attract customers. The company would no longer be doing this, he said. | |
"It's not right if we are charging honest customers more [to fund these deals]," he said. | |
The supplier is sending a letter to all its customers explaining its new policy, in which Mr Bentley says: "It's clear that we need to make things better for our customers. To make sure we do that, I'm committed to having an honest conversation with [them]." | |
As well as offering just two tariffs, the supplier said that, from this month, it will include a "complete breakdown" of all the costs that make up its customers' bills. | As well as offering just two tariffs, the supplier said that, from this month, it will include a "complete breakdown" of all the costs that make up its customers' bills. |
Earlier this week, British Gas announced it had secured a £13bn gas supply contract with Norway's Statoil designed to help insulate customers from volatility in global gas prices. | Earlier this week, British Gas announced it had secured a £13bn gas supply contract with Norway's Statoil designed to help insulate customers from volatility in global gas prices. |
E.On said its own review would take six months to complete, and would look at tariffs, bills, customer support and how it sells its products. | E.On said its own review would take six months to complete, and would look at tariffs, bills, customer support and how it sells its products. |
As well as calling for simpler tariffs following its review, Ofgem said it had found evidence the so-called big six energy firms had increased their prices in response to rising costs more quickly than they had lowered them in response to costs falling. | As well as calling for simpler tariffs following its review, Ofgem said it had found evidence the so-called big six energy firms had increased their prices in response to rising costs more quickly than they had lowered them in response to costs falling. |
The suppliers, it said, should face more competition. | The suppliers, it said, should face more competition. |