The energy firm’s gained notoriety over incorrect bills, excessive profits and high tariffs. A price pledge won’t deflect criticism
Energy companies are hardly popular at the best of times, but British Gas must have hoped for some praise when it said it was freezing energy prices until August, a timely announcement made on the same day Scottish Power unveiled a 7.8% increase.
However, the move – which is being funded by cost cutting – could prove to be a temporary respite for consumers, given wholesale prices are still rising. Barclays analysts said: “We expect [British Gas owner] Centrica will have to raise tariffs in August, or face a retail … margin collapse from 2015’s 7% to less than 3.7% over the next 12 months.”