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CNA Centrica Plc

128.20
-0.80 (-0.62%)
Last Updated: 08:13:33
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Centrica Plc LSE:CNA London Ordinary Share GB00B033F229 ORD 6 14/81P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.80 -0.62% 128.20 128.15 128.30 129.40 128.10 129.35 222,054 08:13:33
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Electric Services 26.46B 3.93B 0.7326 155.36 610.43B

Centrica PLC British Gas Standard Variable Tariff to increase (1769X)

08/08/2018 9:30am

UK Regulatory


Centrica (LSE:CNA)
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TIDMCNA

RNS Number : 1769X

Centrica PLC

08 August 2018

8 August 2018

Centrica plc ('the Company')

British Gas Standard Variable Tariff to increase due to rising wholesale costs

-- The British Gas Standard Variable Tariff (SVT), which was withdrawn for all new customers on 31 March, will increase for existing customers on 1 October by 3.8%.

-- This takes the average bill for a typical dual fuel customer to GBP1205, just below the average of the SVTs for the larger energy suppliers, and represents an increase of GBP44.

-- We are increasing our prices because of an approximately 20% rise in the costs of buying wholesale energy since April, as Ofgem cited when they announced an increase in the level of the prepayment meter cap on 7 August.

-- We will contact 3.5m customers who are affected so they know how their prices will change and let them know about our alternative fixed-term offers.

   --     2.4 million customers on fixed price products will be unaffected by this price increase. 

This price change is due to the rapid increase in wholesale energy costs since early April, when we last announced an increase in the Standard Variable Tariff. Until now we have been able to shield customer bills from the full impact of the increase in wholesale costs because of the way we buy energy in advance.

Since we withdrew our SVT to all new customers in March, any customers who don't actively choose a new tariff upon expiry of their existing fixed-term contract will roll on to our new default 12-month fixed-term Temporary Tariff. The Temporary Tariff will be priced at GBP1180 for a typical dual fuel customer from 1 October, GBP25 less than our SVT and well below the average of the larger suppliers.

We actively want our customers to choose alternatives to the SVT and we provide many opportunities for them to consider our fixed-term deals. We expect to have only 3 million customers on the SVT by the end of the year, down from 4.3 million at the start of 2018.

Mark Hodges, Chief Executive, Centrica Consumer said:

"We have today reluctantly announced plans for an increase in our Standard Variable Tariff (SVT). We understand that any price increase adds extra pressure on customers' household bills. However, this reflects the sharp rise in wholesale energy costs.

In response to rapidly rising wholesale market costs, since April a number of other energy supply companies have increased their SVT prices and Ofgem have also announced a second increase to the prepayment meter cap.

With more than 70 energy supply businesses now operating in the UK, the energy market is increasingly competitive and we are focused on offering all our customers attractive fixed and bundled deals.

As well as providing more choice, we are striving to improve customer service levels, reducing our own costs and rewarding customers. Our British Gas Rewards programme now has more than one million members taking advantage of offers which reward loyalty and encourages engagement."

ENDS

ENQUIRIES

   Investors and analysts       +44 (0)1753 494900    ir@centrica.com 
   Media                                     +44 (0)1784 843000    media@centrica.com 

Centrica plc is listed on the London Stock Exchange (CNA)

Registered Office: Millstream, Maidenhead Road, Windsor, Berkshire SL4 5GD

Registered in England & Wales number: 3033654

Legal Entity Identifier number: E26EDV109X6EEPBKVH76

ISIN number: GB00B033F229

Notes to Editors

   1.     Larger Suppliers Standard Variable Tariffs 
 
                                        Elec 
        Supplier           Gas (GBP)    (GBP)   Dual Fuel (GBP) 
       OVO Energy             547       603          1150 
 BG SVT until 1 October       580       582          1161 
    Utility Warehouse         584       617          1175 
  BG Temporary October 
           2019               588       592          1180 
           SSE                578       618          1196 
      First Utility           538       661          1199 
  BG SVT from 1 October       598       607          1205 
          E.ON                591       617          1208 
      ScottishPower           584       627          1211 
   Co-operative Energy        622       597          1218 
       EDF Energy             581       647          1227 
         Npower               589       641          1230 
 Average excluding BG*        581       628          1208 
 * Average weighted on 
  market shares 
------------------------  ----------  -------  ---------------- 
 
   2.     Wholesale Prices - wholesale prices have moved up significantly since early April 2018. 
 
                     Wholesale Commodity Price 
 Reference Period     Gas (p/th) Electricity GBP/MWh 
 
 9 April 2018             49.90             48.50 
 26 July 2018             60.29             57.18 
------------------  ----------------  ---------------- 
 % Change                  21%               18% 
------------------  ----------------  ---------------- 
 

ICE (Intercontinental Exchange) prices - demand weighted average for Winter 18 and Summer 19.

3. On 7 August Ofgem announced an increase to the level of prepayment meter cap and WHD safeguard tariff by GBP47 from GBP1089 to GBP1136. This will affect 1.6 million British Gas customers on these tariffs.

4. The introduction of the Price Cap from 1 January 2019, will see customers on SVT and temporary tariffs subject to Ofgem price reviews twice every year.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

MSCUWSBRWUAWRRR

(END) Dow Jones Newswires

August 08, 2018 04:30 ET (08:30 GMT)

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