British Gas has announced a new tariff rate that could save Brits cash (file) (Image: Getty)
British Gas has launched a new tariff to help save families money on their energy and gas bills. The company confirmed details of a “Fix & Fall” tariff that locks in energy prices for two years.
The unique tariff has been designed based on feedback from hundreds of customers during a trial period. British Gas believes it could reduce the average dual-fuel bill by up to £50 if prices fall on July 1, 2027. Those on the tariff, which is available to new and existing customers, would also be eligible for half-price electricity between 11am and 4pm on Sundays through the energy giant’s PeakSave scheme.
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Savings could be made at certain times of the week under the new tariff (stock image) (Image: Getty)
After 12 months, if the Ofgem price cap falls, British Gas will automatically lower customers’ rates, so they can benefit from lower prices too.
The announcement from British Gas also confirmed the ongoing rollout of their Warm and Working scheme, which provides free home upgrades, boiler servicing and energy efficiency improvements to vulnerable households.
British Gas engineers will visit 1,000 homes across the country over the next few months to complete free upgrades and checks, including eligible households who are not British Gas customers.
This follows the energy giant’s earlier announcement, committing £40 million to support people facing financial hardship. This funding aims to support “thousands of households” facing rising energy costs and wider cost-of-living pressures through grants and advice from the British Gas Energy Trust.
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Gary Booker, managing director of British Gas, said: “With Fix & Fall, we want to give customers the real peace of mind that we know they want.
“Their prices won’t go up for the next two years, but if prices do fall in the next year, then we’ll automatically lower the rates. So, customers can get the reassurance of a fixed tariff, with the flexibility to save if prices fall.”
“We know many customers are really concerned about their energy costs, and we want to do all we can to help. We’ll be providing free boiler checks and upgrades to homes this summer to get heating systems working more efficiently and ready for the winter months. For anyone who is struggling with the cost of energy there is lots of help available through the British Gas Energy Trust.”
Households will this week find out how much energy bills are set to increase from July when Ofgem’s price cap is updated, as forecasts point to a rise of more than £200 and a painful winter of sky-high bills ahead due to the Iran war.
Ofgem will reveal on Wednesday the level of the annual energy price cap for July to September for a typical dual fuel household across England, Scotland and Wales.
Analysts Cornwall Insight predicted last week the cap will rise by £209 a year to £1,850 from July 1 – an increase of 13% on April’s £1,641 annual cap.
It sets a maximum price per unit of gas and electricity, which means households only pay for the energy they use.
This means households will be largely shielded over the warm summer months, but concerns are growing over a painful hit when the cap is reviewed in October, and energy demand rises as temperatures drop.
Cornwall Insight’s forecasts suggest the cap in October will be similar to July’s, even if the Middle East conflict were to end soon, due to physical damage to infrastructure and the lingering effects of disrupted supply.
