British Gas caves and scraps standard tariffs – ending £2bn energy rip-off
Victory for The Sun's People Power campaign as supplier agrees to move that could save some households £75 a year
BRITISH Gas is scrapping rip-off standard gas and electricity tariffs in a huge victory for The Sun.
Households could save £75 a year in the biggest industry shake-up for more than 15 years.
Britain's biggest energy supplier is expected to today reveal that it will no longer sell open-ended or rolling standard variable tariffs (SVTs) from April.
Instead, new customers wanting to join British Gas will only be able to take up a "no nonsense" fixed-period deal - meaning they have to renew it at the end of one, two or three years and forcing them to shop around.
Insiders claim the company will write to the 5million customers already on their SVTs urging them to switch - hoping to complete the transfer by 2019.
Confirmation of the radical move is expected today when British Gas-owner Centrica announces seven new price plans and a marketing blitz.
British Gas's move is the biggest attempt by an energy supplier yet to see off the threat of the Government's energy price cap.
Writing in today's Sun, British Gas boss Iain Conn says: "Price caps don't work.
"We think everybody should have a fixed term energy deal instead.
"It will increase customer engagement, choice and result in better deals.";
British Gas's SVT is currently £75 a year more expensive than its cheapest internet-only gas and electricity deal. The exact prices for the new fixed price deals haven't been set - but will be cheaper than the current SVT.
Regulators last year accused the Big Six of a near-£2billion rip-off through over-charging customers on SVTs.
The Sun launched its "Power to the People" campaign 12 months ago - revealing the Big Six were charging households on SVTs up to £300 more a year for their gas and electricity than other cut-price online deals.
Business Secretary Greg Clark accused energy giants of ripping off loyal and elderly customers who stay with a company rather than switch.
Theresa May unveiled plans for an energy price cap to stamp out the abuse in October. But the cap may not come into effect for another year.
Mr Conn today says the Government could cut £200 from bills overnight by removing green levies that pay for wind turbines and solar farms.
Currently all the charges are paid for by households through bills.
Mr Conn said the Government should use taxation to raise the money - as it would be fairer on low-income Brits.
He says: "No one likes paying more tax but having people on lower incomes paying for the huge cost of changing the energy system just isn't fair.
"It should be linked to ability to pay."
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