November 20, 2017
The UK's biggest energy supplier has announced plans to scrap its standard variable tariff (SVT) before April 2018 for all new customers.
SVTs tend to be the most expensive energy tariffs. British Gas say that 67% of their customers are currently on their SVT, which is about 5 million households.
British Gas has taken this decision after energy regulator, Ofgem, announced draft legislation designed to lower the cost of energy bills. E.On has already said SVTs will no longer be the default option for customers coming to the end of their existing tariffs.
Announcing the change, Iain Conn, chief executive of British Gas parent firm Centrica, said:
"We have long advocated that the end of the Standard Variable Tariff is the best way to encourage customers to shop around for the best energy deal."
"We will contact all of our customers at least twice a year to encourage them to move away from the SVT."
British Gas contacted all its SVT customers in the first half of 2017, and it says that 10% switched away from the tariff.
The company has also said it will:
• Provide new offers "to respond to customers' changing needs"
• Proactively offer customers a choice of fixed-term tariffs at the end of their contract
• Introduce a new fixed-term default tariff
• Contact customers on legacy Standard Variable Tariffs and offer them better deals
• Introduce simpler bills for all customers
• Improve customer service
Are you currently on a standard variable tariff? Chances are you are paying too much for your energy. See what you could save by using our simple, online comparison and switching service. If you would like to speak to someone about your options you can call 01259 220 000. Any customers that switch with Energylinx throughout November will be entered into a prize draw to win a brand new Suzuki Celerio.
Posted on November 20, 2017 at 11:54 AM