Centrica Drops as U.K. Price Cap on Energy Bills to Be Extended
- Government to trial automatic supplier switching from 2024
- The price cap saves households as much as 100 pounds a year
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Centrica Plc, the U.K.’s biggest energy supplier, fell to a seven-month low after the government announced plans to extend its price cap on the most expensive energy tariffs beyond 2023.
The government wants to stimulate competition in the energy retail market while keeping bills low, according to a strategy published Friday. It also wants to trial automatic switching for when a tariff runs out, which could effectively ban expensive default rates.