The energy supplier wrote to energy regulator Ofgem to demand it change the way wholesale prices used for the cap are calculated.
A source close to Ofgem said it was notified of the decision late on Thursday.
The energy price cap is due to come on New Year’s Day and limit the price on millions of standard variable tariffs (SVTs) to £1,137 a year.
The cap is £68 lower than the current British Gas standard rate for gas and electricity.
Centrica- British Gas’ owner – insisted it did not want to delay the cap’s start date and that the case would likely not be heard before the cap comes into effect on January 1.
But it argued the tariff should be implemented in a “fair and workable way”.
The incredible move comes after a two year campaign by The Sun and watchdogs to end a £2 billion a year energy price rip-off.
Business Secretary Greg Clark accused the Big Six of “milking” loyal customers who stuck on standard tariffs as they believe the company was looking after them.
Instead companies admitted they used the extra profit from SVR’s to finance cut price internet only deals.
Centrica is arguing that Ofgem is wrong to base its cap price on wholesale prices for the period February to July instead of April to September as planned.
One source claimed the switch appeared to have been done to avoid raising the cap price.
Energy Minister Claire Perry in July warned the Big Six they would shatter their reputations for good if they launched a legal review to delay the cap. At the time she told The Sun she feared energy companies were “gearing up” for a challenge.
- GOT a story? Ring The Sun on 0207 782 4104 or WHATSAPP on 07423720250 or email [email protected]
Source: Read Full Article