Centrica share price: British Gas extends tariff freeze until August

Centrica’s (LON:CNA) British Gas unit is freezing gas and electricity prices until August, the blue-chip group has said. The move comes after the utility’s parent announced this week that it was setting up a new global consumer division as part of a strategy overhaul.

Centrica’s share price has been steady in London in today’s session, having inched 0.30 percent higher to 233.29p as of 14:26 GMT. The advance is largely in line with gains in the broader market, with the benchmark FTSE 100 index currently 0.46 percent better off at 7,262.77 points. The group’s shares have lost about 0.2 percent of their value this year, as compared with a 1.7-percent rise in the Footsie.

Centrica’s British Gas unit announced in a statement today that it will extend its price freeze for customers on its standard energy tariff until August. The group pointed out that the move was despite a rise in external costs.
“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,” Mark Hodges, who this week was announced as chief executive of Centrica’s consumer division, commented in the statement, adding that British Gas had “consistently offered one of the cheapest standard energy tariffs” in the last year.

The move comes as rival Scottish Power announced today that it was increasing its standard domestic gas and electricity prices from March 31, citing rises in energy wholesale markets and compulsory non-energy costs. Earlier this month, Npower also announced that it was raising prices for some customers from March 16. Sky News notes that British Gas’ decision to freeze prices may persuade German-owned Eon and the number two player SSE (LON:SSE), to maintain their current freeze on prices.
As of 14:52 GMT, Friday, 10 February, Centrica PLC share price is 233.30p.