Centrica wins High Court price gap battle against Ofgem


BRITISH Gas owner Centrica has won a court battle against the way Ofgem calculated a part of its energy price gap.

The company applied for a judicial review after the regulator announced a change to the methodology used to set the opening price cap of £1,137 a year for a typical household at the beginning of January this year.

Centrica previously said that had led to a one-off cost increase of £70 million for British Gas in the first three months of 2019.

The company welcomed the court finding with a statement, saying:

“This outcome underlines the importance of transparent and rigorous regulatory processes to ensure well-designed regulation that is in the interest of a well- functioning energy market, which in turn allows participants to operate with confidence and ultimately benefits all energy consumers.

“We look forward to continuing to work closely with the government and the regulator on the development of future policy and we remain committed to delivering for our customers’ changing needs, including through our involvement in the transition to a lower carbon future.”

An Ofgem spokesman said the regulator was disappointed by the High Court’s judgement but its energy price cap would remain fundamentally unchanged.