Iain Conn, Group Chief Executive Centrica plc, said:
“We have heard the Prime Minister’s speech and will wait to see what the Draft Bill actually says. We have been very clear that the UK energy market can and should be improved for the benefit of customers and over the last year we have implemented many changes to our own approach including significantly improved service, widespread programmes of customer engagement and a new scheme to reward loyalty.
“We agree that some further structural change is required. However, we have also been clear that price caps are the wrong solution. There is clear evidence that where they have been tried, they have been bad for customers. They limit choice, reduce competition, and prices tend to cluster around the cap.
“The main problem with the market is the Standard Variable Tariff. Rather than cap them, which will keep standard tariffs going, our position has been that they should come to an end. We believe a more effective and long-term solution would be for the regulator to end the Standard Variable Tariff across the industry and to make some other structural changes.
“Ofgem has been tasked by the Government to provide advice on improving key aspects of the market and have been consulting widely. We have made extensive contributions to both Government and to the regulator and look forward to hearing from Ofgem shortly on the results of their recent consultations.
We will continue to work constructively with the Government to pursue a better and more sustainable outcome for customers.”