Comment on Centrica's 2009 interim results

Published:

30/07/2009

Topic:

Press Release,Gas & Electricity

Commenting on Centrica's 2009 Interim results, Scott Byrom, utilities manager at the UK's leading price comparison site, moneysupermarket.com, said:

"Is there a glimmer of hope on the horizon for beleaguered Brits this morning?  News today that British Gas, the retail arm of energy giant Centrica, reports profits up by £133 million, or 80 per cent, hopefully means good news for customers - either with the cost of bills holding fast, or even better seeing further decreases.

"Earlier this year, British Gas customers saw a welcome 10 per cent cut to the cost of gas and electricity, with British Gas making the first cut of the year out of the 'Big Six' on 22nd January 2009¹.  Watch this space though - British Gas no longer holds the crown for the best value energy tariff on the UK market as competitor EDF Energy snatched the top spot last week; knocking it from the top position to offer the cheapest annual online dual fuel deal at a competitive £983 a year. If British Gas wants to regain the title as top provider ahead of the winter it may make a move soon, and this may even spark another round of cuts from the rest of the 'Big Six'.

"However, for bill payers coming off fixed deals now, it is crucial to scour the market to find the next best deal for their circumstances immediately.  There is no doubt fixed rate deals were in vogue last year; 70 per cent of our customers swapped provider in July 2008 to choose a "fixed" energy tariff saving themselves an average of £134.50 a year against a back drop of sharply rising prices, for example Scottish Power's Fixed Price 2009 deal ends on August 31; these customers could see their bills rise by £135 a year². With 11fixed deals set to end before the year is out, my advice to customers who have fixed deals expiring soon is to look to swap at least four weeks before the termination date of the deal to avoid moving to a more expensive tariff."

- Ends -

Notes to editors:

¹ 2009 price cuts from the UK's 'Big Six' providers:

• Thursday, January 22, 2009 - British Gas cut gas prices by 10 per cent, effective 19 February 2009
• Friday, February 6, 2009 - Scottish & Southern cut electricity and gas prices by nine and four per cent respectively, effective 30 March 2009
• Thursday, February 12, 2009 - E.ON cut electricity prices by nine per cent, effective 31 March 2009
• Friday, February 13, 2009 - EDF Energy cut electricity prices by 8.8 per cent, effective 31 March 2009
• Friday, February 27, 2009 - ScottishPower cut gas and electricity prices by 7.5 and three per cent, effective 31 March 2009
• Monday, March 16, 2009 - npower cut electricity prices by 7.2 per cent, effective 31 March 2009
• Thursday, May 7, 2009 - British Gas cut electricity prices by 10 per cent, effective immediately
• Friday, July 3, 2009 - E.ON cut gas prices by 3.3 per cent, effective immediately

² Popular 2008 fixed deals due to end this year:

Energy Provider	Tariff Name	End Date	Recommended switch date*	Saving against provider's standard**
npower	One Tariff	31-Jul-09	03-Jul-09	£147.78
Scottish Power	Fixed Price 2009	31-Aug-09	03-Aug-09	£134.91
EDF	Price Freeze 2009	30-Sep-09	02-Sep-09	-£21.53
Scottish Power	Fixed Price Energy Oct 2009	30-Sep-09	02-Sep-09	£62.30
E.ON	Price Protection v16	01-Oct-09	03-Sep-09	£74.51
E.ON	Price Protection v17	01-Oct-09	03-Sep-09	£32.18
EDF	Price Protection 2009	31-Oct-09	03-Oct-09	-£82.02
E.ON	Fixed Price 2009	01-Nov-09	04-Oct-09	-£59.11
Scottish Power	Fixed Price Energy Dec 2009	30-Nov-09	02-Nov-09	-£56.57
British Gas	Price Guarantee	31-Dec-09	03-Dec-09	£85.63
npower	Price Protector 2010	31-Dec-09	03-Dec-09	-£169.70

*This date is 4-weeks (28-days) prior to the End Date to allow sufficient time for your application to be processed.

** This saving represents the cost saving against the provider's Standard deal.

                                                                       

Early Termination fees:

Provider	Tariff	Tariff End Date	Termination Fees
British Gas	Price Guarantee	31-Dec-09	£75
E.ON	Price Protection v16	1-Oct-09	£35
E.ON	Price Protection v17	1-Oct-09	£35
E.ON	Fixed Price 2009	1-Nov-09	£35
EDF	Price Protection 2009	31-Oct-09	£50
EDF	Price Freeze 2009	30-Sep-09	£50
npower	One Tariff	31-Jul-09	£50
npower	Price Protector 2010	31-Dec-09	£50
Scottish Power	Fixed Price 2009	31-Aug-09	£50
Scottish Power	Fixed Price Energy Oct 2009	30-Sep-09	£50
Scottish Power	Fixed Price Energy Dec 2009	30-Nov-09	£50

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