 has hit out at the Government proposals to cap energy prices, warning that it can lead to higher household){kind=link}
British Gas owner Centrica (LON:CNA) has hit out at the Government proposals to cap energy prices, warning that it can lead to higher household bills for consumers as well as reduce the competition.
The energy giant has said that the are suggesting “alternative ways” to ministers to address concerns, without introducing price caps.
Centrica has also announced plans to 1,500 jobs this year from their 36,500 person workforce in a major restructuring programme. The group achieved savings of £384m last year and plan to cut a total of 6,000 jobs.
“Centrica does not believe in any form of price regulation. Evidence from other countries would suggest this will lead to reduced competition and choice, and potentially higher average prices.
“However, our focus on competitive pricing, cost efficiency, improved service levels, rewarding loyalty and delivering propositions which customers want should leave us competitively well-positioned in order to deal with whatever form of market change is ultimately enacted.”
Whilst British Gas has frozen prices until August, experts expect the company to increase them due to rising cost pressures. Five of the six main energy companies, including EDF Energy and Npower, have increased prices in recent months.
The energy giant was recently under fire when Conn received a pay increase of 40 percent for 2016. His new pay package totalled £4.15 million, an amount that would pay the lighting and heating bills for almost 4,000 customers on the standard tariff.
Centrica said that it recently lost 261,000 customers in the first quarter due to unusually warm weather. The company has announced that it will cut a further £250 million in costs and it is on track to cut a further 1,500 jobs in 2017.
Centrica remains the UK’s biggest domestic energy supplier. On Monday, chief executive Conn will face down shareholders at Centrica’s AGM.