Centrica to challenge energy price cap

The British Gas owner plans to apply for a judicial review against regulator Ofgem

Big Zero Report 2022

Centrica is to mount a legal challenge against the UK’s upcoming energy price cap.

The British Gas owner has announced it plans to apply for a judicial review against Ofgem,

The energy giant claims the regulator has set the threshold too low and wants to review the way the cap is calculated with regards to the wholesale cost of gas and power, suggesting Ofgem had not properly taken this factor into account.

In a statement on its website, Centrica said it does not wish to delay implementation of the cap but hopes to change the manner in which it is set.

A spokesperson for the company said: “Centrica is seeking judicial review of Ofgem’s decision of 6 November 2018, which relates only to the treatment of wholesale cost transitional arrangements and Ofgem’s decision not to investigate and correct its failure to enable the recovery of the wholesale energy costs that all suppliers incur.

“As we have previously said, we do not believe that a price cap will benefit customers but we want to ensure that there is a transparent and rigorous regulatory process to deliver a price cap that allows suppliers, as a minimum, to continue to operate to meet the requirements of all customers.”

Ofgem told ELN: “Ofgem carried out an extensive consultation process when setting the price cap and we believe that it offers consumers on poor value tariffs a fairer deal. In the event of a judicial review we would defend our proposals robustly.”

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