Millions of homes could save even more on energy bills
Most homes pay price cap rates for their gas and electricity. British Gas fixed price tariff rates are currently priced below price cap rates.1
This means customers paying price cap rates could save money by switching to a British Gas fixed tariff. British Gas customers with an electricity smart meter can also sign up to PeakSave to make even more savings.
Read on to learn why now could be a great time to switch if you’re on a variable tariff, or discover more about our tariffs.
Most homes on a Standard Variable tariff could save with a fixed tariff
According to Ofgem, around 80% of households are on a variable tariff for their electricity and gas.2 You might be on a variable type of tariff if:
You haven’t switched energy suppliers for some time
Your fixed rate plan ended, and you didn’t switch to a new fixed tariff.
With a variable tariff, prices are usually set by the energy price cap.
For a typical household paying by Direct Debit, this is currently £1,717 a year. The price cap limits standing charges and unit rates for gas and electricity, but it doesn’t cap your total bill.
Avoid price change
The price of energy on a variable tariff usually changes every three months when a new price cap is set. This can make budgeting harder.
Locked rates
With a fixed energy tariff, your unit rates and standing charges are locked in, for usually one or two years.
Switch to a fixed deal
You need to look at what is expected to happen to energy prices over the next year. We’ve published our future price cap predictions to help customers decide whether to fix.
Remember
Fixing below the current cap during the winter months can lead to extra savings – as most homes use more energy during winter months.
Our fixed tariffs are priced below the current (October) price cap
This means you can save money through the winter on your bills when you’re likely to be using more energy.
Plus, if you choose a new fixed price tariff with us, and we launch an even cheaper fixed price tariff in the future - then you can swap to it for free.3
If you’re a British Gas energy customer
Log in to your online account – you’ll be able to see your current tariff and compare all the tariffs we have available.
Not a British Gas energy customer?
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British Gas customers can save even more with PeakSave
With PeakSave, you can save money by making small changes to when you use electricity. It’s all done using your smart electricity meter. So, if we supply your electricity and you have a smart meter, you’re good to go.
Our customers taking part in PeakSave are saving £24 on average per year.4
More information
How could millions of customers save “even more with British Gas”?
- Move to a fixed tariff
Ofgem’s Retail Market Indicators shows that around 80% of households with a credit meter (i.e. not in prepayment / PAYG mode) are on a variable/default tariff for their gas and electricity [insert link]. Our fixed tariffs are priced below the current Ofgem price cap and the standard default tariff rates of other large suppliers. This means that households on such tariffs could reduce their energy costs by moving to a fixed tariff.
The exact savings achieved will vary depending on your energy use. The price cap is expected to increase in January 2025, but if the price cap falls after April 2025, you could pay more for your energy with a fixed tariff. See our latest predictions for the price cap.
- Sign up for PeakSave
PeakSave rewards households for shifting their electricity usage to times when there’s less demand, or more renewable electricity available on the grid. This helps support a greener energy supply. PeakSave customers also receive half price electricity on Sundays between 11am-4pm. Average annual savings for PeakSavers are around £24 per year.
All British Gas electricity customers, with a working smart meter, are eligible to join PeakSave. It doesn’t matter what tariff you're on. If you haven’t got a smart meter, you can book a free installation. Just log into your account and check for an invitation to upgrade. If there’s no invite, please check back regularly.
What if the price cap falls after April 2025?
We believe in providing long-term value. You shouldn’t have to switch suppliers to get a great deal. That’s why, if you choose a fixed tariff with us and we introduce an even better one in the future, you can switch to it for free.
Additional information
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Terms and conditions apply. Ofgem has announced that the price cap will increase from 1st January 2025. You could save by choosing our fixed tariffs instead of our Standard Variable tariff, which is governed by Ofgem’s price cap. Savings based on average domestic gas and electricity energy consumption values (gas: 11,500kWh, electricity: 2,700kWh). The exact savings achieved will vary depending on your energy use. If the price cap falls after April 2025, you could pay more for your energy with a fixed tariff. See our latest predictions for the price cap.
Source: Ofgem https://www.ofgem.gov.uk/retail-market-indicators. To access the figures, scroll down to Prices and profits. There you’ll see where Ofgem has published graphs which show tariff type by domestic gas and electricity accounts.
We don’t charge an exit fee if you change from one fixed tariff to another fixed tariff.
PeakSave average savings per household up to 30th September 2024.