Centrica calls for simpler, more transparent energy sector

30 June 2023

Energy crisis

Media Relations

Centrica has called on the energy regulator Ofgem to make a number of reforms that could make the energy sector more transparent, simpler and more affordable for customers. In an editorial published this morning, Chris O’Shea, Group Chief Executive of Centrica Group has called for the three principle reforms that could achieve this:

Abolishing the standing charge from the price cap. Removing the standing charge and rolling the costs into the unit cost of the price cap will reduce complexity on energy bills, and ensure those who carefully manage their energy see the benefits of their choices.
Examine the benefits of moving from regional to national pricing. Moving to a flat national pricing tariff – which is the same wherever you live in the UK – removes further unnecessary variations from bills. The impact of this change would need to be carefully studied but we believe the regulator should look at this.
Introduction of a progressive social tariff. Implement a progressive social tariff so that those who most need additional support to pay their bills can receive it.

"Existing energy bills are way too complicated – we’ve got to change that. Any customer should be able to pick up their bill and easily understand how it is calculated, and how they can get help if they need it. It should be simple and straightforward. There are three things we want Ofgem and the Government to change to make the system more affordable, fairer and easier to understand."

Chris O'Shea, Centrica CEO

Chris O’Shea said: “Existing energy bills are way too complicated – we’ve got to change that. Any customer should be able to pick up their bill and easily understand how it is calculated, and how they can get help if they need it. It should be simple and straightforward. There are three things we want Ofgem and the Government to change to make the system more affordable, fairer and easier to understand.

He added: “The last few years have shown us that we need to make changes. This is a crucial issue for millions of households. We need other suppliers, distributors, regulators, and the Government to come together, work with us, and help us make these reforms a reality.”

Taken together these reforms have the potential to transform the energy sector and create a simpler, more transparent system for consumer. You can read the full piece from Centrica Group Chief Executive Chris O’Shea here.