{"id":5680,"date":"2018-12-20T21:04:20","date_gmt":"2018-12-20T21:04:20","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/centrica-in-legal-challenge-to-energy-price-cap\/"},"modified":"2018-12-20T21:04:20","modified_gmt":"2018-12-20T21:04:20","slug":"centrica-in-legal-challenge-to-energy-price-cap","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/centrica-in-legal-challenge-to-energy-price-cap\/","title":{"rendered":"Centrica in legal challenge to energy price cap"},"content":{"rendered":"\n<div property=\"articleBody\">\n<figure class=\"media-landscape no-caption full-width lead\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                <img loading=\"lazy\" decoding=\"async\" class=\"js-image-replace\" alt=\"British Gas van\" src=\"https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/140DE\/production\/_88324128_britishgas_28580943457.jpg\" width=\"976\" height=\"549\"\/><span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Centrica<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p class=\"story-body__introduction\">British Gas owner Centrica is to mount a legal challenge against Britain&#8217;s upcoming energy price cap, arguing it has not been calculated fairly. <\/p>\n<p>The energy provider said it would apply for a judicial review against the regulator Ofgem, saying it had set the threshold too high.<\/p>\n<p>The firm said it wanted not to delay the cap, due to come in on 1 January, but to change how it is set.<\/p>\n<p>The regulator said it would defend its proposals &#8220;robustly&#8221;.<\/p>\n<p>Ofgem proposed a cap on energy bills in September, following concerns that consumers were not getting best value for money from suppliers&#8217; default rates, or standard variable tariffs (SVT) . <\/p>\n<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\"><a href=\"http:\/\/www.bbc.co.uk\/news\/business-46300669\" class=\"story-body__link\">British Gas to take \u00a370m hit from price cap<\/a><\/li>\n<li class=\"story-body__list-item\"><a href=\"http:\/\/www.bbc.co.uk\/news\/business-46107733\" class=\"story-body__link\">Energy bills to be capped in new year<\/a><\/li>\n<\/ul>\n<p>It means an average dual fuel customer who pays by direct debit should pay no more than \u00a31,137 a year, \u00a368 lower than British Gas&#8217;s SVT.<\/p>\n<p>However, the policy has rattled some suppliers who say it will damage their profits and it has also <a href=\"https:\/\/www.bbc.co.uk\/news\/business-46294104\" class=\"story-body__link\">been blamed for some smaller providers going bust<\/a>. <\/p>\n<p>In November Centrica warned the cap would cost it \u00a370m in lost operating profits in the first quarter of 2019.<\/p>\n<p>This was after British Gas shed 372,000 household accounts in the four months to the end of October as customers left its SVT.<\/p>\n<figure class=\"media-landscape no-caption full-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                 <span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">PA<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p>Centrica says that Ofgem had not properly taken into account the wholesale energy costs that &#8220;all suppliers incur&#8221; when it devised the cap.<\/p>\n<p>Explaining its decision to seek a judicial review, it said: &#8220;Through this action Centrica has no intention to delay implementation of the cap, and does not expect the cap to be deferred in any way.<\/p>\n<p>&#8220;As we have previously said, we do not believe that a price cap will benefit customers but we want to ensure that there is a transparent and rigorous regulatory process to deliver a price cap that allows suppliers, as a minimum, to continue to operate to meet the requirements of all customers.&#8221;<\/p>\n<p>Ofgem told the BBC that it &#8220;carried out an extensive consultation process when setting the price cap and we believe that it offers consumers on poor value tariffs a fairer deal. <\/p>\n<p>&#8220;In the event of a judicial review we would defend our proposals robustly.&#8221;<\/p>\n<p>The regulator says the new energy price cap could save 11 million customers an average of \u00a376 a year on their gas and electricity bills.<\/p>\n<p>But it has already said that the level of the cap is likely to rise in April 2019, to reflect the higher cost of wholesale energy. As a result, the average annual saving in 2019 is likely to be lower.<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/news\/business-46642170\">Source<\/a> by <a href=\"\">[author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image copyright Centrica British Gas owner Centrica is to mount a legal challenge against Britain&#8217;s upcoming energy price cap, arguing it has not been calculated fairly. The energy provider said it would apply for a judicial review against the regulator Ofgem, saying it had set the threshold too high. The firm said it wanted not &hellip; <\/p>\n","protected":false},"author":0,"featured_media":5681,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=5680"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/5680\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/5681"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=5680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=5680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=5680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}