British Gas customers could save up to £172 on their energy bills against Ofgem’s April price cap rates by switching to a fixed deal.
The major energy supplier currently offers a Fixed V32 tariff which costs the average dual fuel household £1,677 over a 16-month fix – £172 less than April’s price cap rates.
Energy regulator Ofgem will increase its price cap for the third time in a row from April 1, taking the average bill for households in England, Wales and Scotland on a standard variable tariff up to £1,849 per year.
Currently the price cap costs the average dual fuel home £1,738 per year, but the 6.% price hike will add an extra £111 to bills per year – or around £9.25 per month over the three-month period of the price cap.
The price cap sets the maximum rate per unit and standing charge that customers can be charged by suppliers for their energy use – not the total bill, so if you use more energy then you will pay more.
But price comparison website Uswitch says it’s possible for households to beat the April price cap as energy suppliers currently offer deals that are below the new rate, with British Gas being the cheapest of the large suppliers.
Richard Neudegg, director of regulation at Uswitch, said: “The hat-trick hike of 6.4% in April will add £111 to the average annual bill in yet another price cap blow for standard tariff customers. Consumers can take action to avoid this. If you are still riding the rising rates, now is the time to find a better deal.
“There are plenty of fixed deals available that are cheaper than today’s rates, let alone the higher April prices. A fixed deal could protect you from further price increases for 12 months or longer.
“The cheapest fix on the market, currently from Outfox the Market, could save the average household around £179 per year versus the April price cap.
“The larger suppliers are also vying for customers. The cheapest large supplier fixed deal is from British Gas and could save the average household around £172 per year against the April rates.
“Households still sitting on a deal linked to the price cap can absolutely beat the upcoming hike. We urge anyone who hasn’t switched in a year or more to see what savings they can make.”
The British Gas Fixed Tariff V32 would cost the average dual fuel household £1,677 annually, fixed for 16 months. Customers should note there is a £50 per fuel exit fee charge.
The deal is exclusively available on Uswitch, Confused.com, and direct via British Gas. Customers who switch to this deal through Uswitch.com can top-up their savings by earning £20 Uswitch Cashback.
