Energy provider British Gas has announced that it is set to simplify its gas and electricity tariffs, in response to pressure from consumers.
The company will offer just two tariffs – fixed and variable – to make it easier for customers to compare prices. Along with the other members of Britain’s ‘big six’ energy suppliers, British Gas announced that it would increase gas and electricity prices this autumn.
Richard Lloyd - chief executive at consumer campaigning group Which? - welcomed the announcement, but called on regulator Ofgem to take action to ensure tariffs are simplified across the board. He also warned British Gas its latest move could backfire if it translates into further price hikes.
“People are frustrated with complicated energy tariffs, so it is good to see British Gas listening to its customers and taking the first step towards making them simple and easier to compare,” he said. “We want all tariffs to be easy to understand - with a simple daily rate and unit price.
The announcement came as independent rival Ovo Energy revealed it had scrapped plans to introduce gas and electricity price hikes, citing a recent fall in wholesale costs.