LONDON (ShareCast) - (Sharecast News) - British Gas owner Centrica is seeking a judicial review to challenge how regulator Ofgem set the electricity price cap.
The FTSE 100 group said late on Thursday that it was launching the legal challenge the level at which the price cap was set, suggesting it believes it has been set too low.

The government capped standard electricity tariffs after the Competition & Markets Authority found that prices were too high because of excess profits and inefficiency.

Ofgem set the annual cap at £1,137 for a typical household from January, which compares to the British Gas standard tariff of £1,205.

Centrica said that its judicial review "relates only to the treatment of wholesale cost transitional arrangements and Ofgem's decision not to investigate and correct its failure to enable the recovery of the wholesale energy costs that all suppliers incur".

It said there was "no intention to delay implementation of the cap" but only that it wants to "ensure that there is a transparent and rigorous regulatory process to deliver a price cap that allows suppliers, as a minimum, to continue to operate to meet the requirements of all customers".

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE