Ofgas approves Centrica price cuts
Thursday 29 May 1997
Ms Spottiswoode said the ValuePlus package offered to 500,000 homes in the first domestic competition trial area did not amount to predatory pricing, despite the opposition of most rival suppliers and the Gas Consumers Council (GCC). Centrica, the demerged British Gas supply business, is offering to cut bills by up to 12 per cent.
Ofgas, the watchdog, said it had allowed ValuePlus to continue because competition in the South-west could be said to be established. Almost 105,000 households have switched from British Gas since the trial began a year ago, though independent suppliers argued numbers moving have dropped by half since ValuePlus was launched.
Sue Slipman, GCC director, disagreed with the conclusions. "We recognise that Ofgas had a very hard decision to make. We do not share Ofgas's view that competition has been well enough established."
The long-awaited Ofgas decision said the ruling could not be taken as a precedent for the other competitive areas in the South-east and Avon and Dorset, where 240,000 customers have switched to new suppliers. Ms Spottiswoode has also called for changes to British Gas's operating license to give three months' notice of any future changes.
British Gas Trading, the supply operation, said it was pleased with the announcement, but said the proposed new conditions were "up for discussion". It was too early to say whether ValuePlus would be offered elsewhere.
Neil Lambert, joint general manager of Calortex, one of the largest independent suppliers, called the ruling a "cop out". He said: "She had the tools to do something effective and she hasn't done so."
- 1 Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
- 3 Israel-Gaza conflict: The myth of Hamas’s human shields
- 5 Dutch paedophile club to fight their ban at the European Court of Human Rights
Lana Del Rey: 'I have slept with a lot of guys in the industry'
Peaches Geldof cause of death: 'Heroin addict' socialite had taken fatal dose of drug, inquest concludes
Peaches Geldof inquest: Tragic final moments of socialite's life reveal she lied to husband about failed heroin tests
Israel-Gaza conflict: The myth of Hamas’s human shields
Malaysia Airlines MH17 crash: Was a Russian-made missile really parked in this quiet square?
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...
£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...
£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...
£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...