Victory for The Sun’s People Power campaign as British Gas vows to put an end to offering cheapest deals to ‘new customers only’

ENERGY giant British Gas has vowed to end a ban on existing customers taking the best deals - in a fresh victory for The Sun.

As part of our investigations into Big Six firms we found they had rules saying families are not allowed to switch to their new cut-price tariffs.

In October we revealed the shocking scale of the practice - prompting demands from MPs and consumer groups for an end ot the unfair system.

These deals for new customers at the time were between £75 and £258 a year cheaper than those for current ones - who were not allowed to take them.

First Scottish Power - which had avoided the practice - vowed in October to never introduce such a ban. Now British Gas has done the same - as it also announced it was freezing prices.

British Gas boss Mark Hodges said: “We’re also making a commitment that all British Gas customers will always get access to our best deals.”

The other four - Npower, E.on, SSE and EDF Energy - have since stopped “new customer only deals” after our campaign but have yet to commit to banning the unfair practice.

At the time, E.On’s customers were badly hit. The cheapest deal on offer for the average family already with the firm in October was £1,014.

Yet those switching from a rival firm were able to grab a deal for £756.

It meant a “loyalty tax” of £258 for E.ON customers.

Will Hodson of consumer collective TheBigDeal.com said: “Well done to the Sun for highlighting this issue and well done to British Gas and Scottish Power for doing the right thing. But it’s a disgrace that the other Big Six suppliers still think it’s OK to ban existing customers from taking their best deals.”

Energy giants British Gas and E.ON yesterday bragged they will hold prices for four months - but only for those overpaying on their pricier tariffs.

The Big Six giants said they will not increase the prices of its so-called standard tariffs until April next year.

A leaked report obtained by The Sun last month showed it makes as much as £249 profit per customer on these deals - based on official industry data.

Around seven in ten families are on standard tariffs - and they are among the priciest on offer.

A standard tariff for E.ON is one of the priciest in the country. For those settling their bills with cash or cheques it costs £1,127 for homes using the typical amount of gas and electricity. That compares to £863 for other deals from rivals - more than £200 less.

British Gas - the biggest power firm - charges £1,102 for its standard tariff, which some six million homes are on.

The decision follows the announcement last month by SSE, the second biggest supplier, that it will not raise prices for millions of customers until April next year.

Energy giants are acting after the Government announced a fresh crackdown on the sector - on the back of investigations by The Sun highlighting how they are ripping customers off.

Martin Lewis, founder of MoneySavingExpert.com, said: “Don’t let these price freezes by British Gas, Eon, SSE or any others who announce similar, lull you into a false sense of security.

“If you are on a standard tariff from a big six firm, you are already massively overpaying.”

Alex Neill, from consumer group Which?, said: “While it’s welcome that another big energy supplier is freezing its standard tariff prices, these are generally the most expensive deals on the market and customers should look to see if they can switch to a better deal.”

British Gas chief executive Mark Hodges, said: “The commitments we’ve made today show we have been thinking hard about ways to improve how the energy market works for all our customers, and is taking tangible action.”