Centrica Questions U.K. Government's Energy Price Cap Figures
December 11 2017 - 10:01AM
Dow Jones News
By Adam Clark
Centrica PLC (CNA.LN) has claimed that the U.K. government's
proposed price cap on energy could force suppliers into cutting
investment and damage the roll-out of smart meters.
In written evidence to parliament, published on Monday, the
owner of British Gas said it was "concerned" about the government's
claim that a price cap will remove 100 pounds ($133.82) from the
average customer's bill.
Centrica said it posts an average profit per customer of GBP50
and the cap would therefore assume suppliers recorded no
profit.
The company said it believes the case for the price cap has been
built on the Competition and Market Authority's (CMA) estimate that
customers were losing out on GBP1.40 billion in average on bills
between 2012 and 2015--a figure that Centrica said has been "widely
discredited" by former regulators and economists.
Centrica also said the price cap risks lowering customer
engagement in having a smart meter installed, and could leave
suppliers unable to recover the costs of the program.
The company said it opposes the introduction of a cap and
proposes instead the phasing out of standard variable tariffs--more
expensive pricing plans that are triggered when introductory fixed
deals end.
Centrica also said that if a cap is introduced, it should be
subject to appeal to the CMA, and be kept under constant
review.
Shares are down 2.30 pence, or 1.6%, at 141.80 pence at 1422
GMT.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
December 11, 2017 09:46 ET (14:46 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Centrica (PK) (USOTC:CPYYY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Centrica (PK) (USOTC:CPYYY)
Historical Stock Chart
From Apr 2023 to Apr 2024