British Gas bosses claim standard tariffs are ‘good value’ – despite being £400 dearer than best deals

DELUDED British Gas bosses yesterday bizarrely claimed customers on standard tariffs have been getting “good value” - despite paying as much as £400 over the odds.

The comments came as the firm’s parent company Centrica announced profits of £1.5billion - and controversy over bills being too high. British Gas made £553million.

Iain Conn, boss of Centrica, bleated: “Standard tariffs are actually good value and our standard tariff is demonstrably good value.”

But analysis by The Sun shows that last year British Gas customers on standard tariffs were paying as much £390 more than those on the firm’s best deals. For almost all the year they were at least £347.

For example, in February last year the average household on its standard tariff paying on receipt of bill was working out £1,134 a year.

Those who signed up to its best fixed tariff at the time could have got a deal for £744 for a year - that’s £390 or 53 per cent lower.

It is the most loyal customers who are on SVTs - those who have been with a firm for over a year are moved onto them.

Standard variable tariffs have been in the news since the Sun revealed in October how seven in ten Brits were stuck on them - paying hundreds more than suppliers’ best deal. Our probe sparked action from Energy Secretary Greg Clark.

Will Hodson, co-founder of The Big Deal - which campaigns for reform in the energy sector - said: “British Gas announcing profits of half a billion pounds is a kick in the teeth for families across the country.

“It’s no wonder that British Gas’s profits are so huge when millions of British Gas customers are being overcharged by hundreds of pounds a year.

“British Gas should do the right thing and cut energy prices. Instead, they’re promoting a laughable “loyalty” scheme to give people a few pounds off TV packages. Frankly that adds insult to injury.”

More than 409,000 families switched from British Gas in the year to December 31, marking a 3 per cent fall to 14.25 million.

British Gas is one of few so-called Big Six energy suppliers to have frozen prices in recent months.

Companies including Npower, EDF and ScottishPower have hiked customer prices, with many blaming rising wholesale costs.

ScottishPower recently announced that standard gas and electricity bills would rise 7.8 per cent from March 31, while Npower set out plans to hike gas and electricity prices by 9.8 per cent - a move that will add £109 to annual dual fuel bills.

Centrica saw its operating profits jump four per cent to £1.5billion. Centrica’s British Gas residential energy supply arm, which only covers UK homes, made an operating profit to £553 million.