British Gas to extend price freeze until August

Centrica’s British Gas said on Friday that it will extend its price freeze on gas and electricity for customers on its standard energy tariff until August.

The company said it was holding its price despite increases in external costs, as it significantly reduces its own costs, adding that its standard tariff continues to be cheaper than 95% of the market.

At the end of last year, British Gas committed to make all energy deals available to all customers and to give customers on its standard tariff an annual energy health check to make sure they are on the right tariff for them.

Mark Hodges, chief executive of Centrica Consumer, said: "We're pleased to give our customers on standard tariffs the peace of mind that the price they're paying will remain unchanged until August. In the last year British Gas has consistently offered one of the cheapest standard energy tariffs.

“In a competitive market with over 50 suppliers we are determined to give our customers great offers and services. In December we promised to take tangible action to improve how the energy market works for all our customers. That effort continues. We aim to do even more in the coming months to meet our customers’ needs, earn their business, and reward their loyalty.”

Last week, NPower announced that it would hike its standard tariff gas and electricity prices by 4.8% and 15%, respectively, from 16 March.

The move, which marked the first price increase since October 2013, means a typical dual fuel energy bill will rise by around 9.8%, or £109.