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 Woman accidentally shoots herself in the head while posing for a selfie
- 2 Art Garfunkel: Paul Simon is a 'monster' with a Napoleon complex
- 3 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 4 Female Muay Thai champion hustles coaches to give them a beating
- 5 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Woman accidentally shoots herself in the head while posing for a selfie
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
iJobs Money & Business
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...
£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...
£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...