Last Updated: 27 October 2021
British Gas increased the price of its Standard Variable Tariff by £139 on 1 October 2021. This is in line with the maximun allowed under the Energy Price Cap. Energy bills for a household with average energy usage now stand at £1,277. This is £235 (23%) more than they were just 1 year ago. Larger energy users will pay considerably more.
In view of the unfolding energy crisis, there is, unfortunately, nothing you can do at this point to reduce your energy prices. The market has been turned on its head and has basically ceased to function. British Gas’ Standard Variable Tariff is just about the best energy deal you can get at the current time. You can reduce your energy bills but only by cutting back on your energy usage.
And there is far worse to come. Based on current wholesale energy prices, when the price cap is next increased on 1 April 2022, it will increase by ANOTHER £400 give or take. (give or take). And yes, that is on top of the £139 increase you have just seen. If you would like to know how much the British Gas Standard Variable tariff will increase by, please visit our energy bills forecast page (table updated weekly).
We are sorry to say that your tariff will increase again in…
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In view of the evolving energy crisis, this tariff can no longer be applied for. Comments about savings and switching do not apply at the current time. Other than that, the rest is still good.
This is the Standard variable tariff from British Gas.
British Gas withdrew the tariff from sale on 1 April 2018, under pressure from politicians over “rip-off” energy prices; essentially because Standard Variable tariffs were typically an energy supplier’s most expensive tariff. However, British Gas has now brought it back to life. So, if you like throwing your money away, you can apply for it.
Data from Ofgem, the GB gas and electricity regulator, shows that, as at July 2021, British Gas had around 3.2 million customers on the Standard tariff or other default tariffs. This represents approximately 50% of British Gas’s customer base. This is made up 3.1 million British Gas gas accounts and 2.3 million British Gas electricity accounts. This has fallen from 3.9 million customers as of July 2018. It is encouraging to see customers switching to cheaper energy tariffs. However, losing 700,000 customers over 3 years is only 6% a year. It means that the remaining 3.2 million are (usually) overpaying by £800m. Furthermore, as smaller energy suppliers go bust, British Gas has stepped in to mop up hundreds of thousands of those stranded customers, so reversing some of these customer losses.
f you are on this tariff, you need to pay attention. You are paying too much for your energy. Way, way, way toooo much! But you probably already knew that right?
A dual fuel customer with average energy usage is paying £250-300 a year over the odds for something as basic as energy. That is the amount you can save each year by switching to a cheaper tariff with another energy supplier. Across 3.2 million dual fuel customer accounts that means British Gas customers are needlessly wasting £800 million pounds a year. Shocking but true.
So if you are still on this tariff, do yourself a big favour and get yourself onto a cheaper energy deal.
There are 2 basic ways to do this.
For the biggest saving do a price comparison against other energy suppliers and tariffs in the market. You can do that here.
Why pay more for the same energy?
Find and switch to a better deal in minutes.Get Started Now
If you are wedded to British Gas and want to stay with them, they may have a number of better value tariffs you can move too. Probably not the cheapest option but certainly cheaper than staying on British Gas’ Standard tariff.
Key Features of this tariff
Key features of the Standard Variable tariff include;
– This is a Variable rate tariff which means that your energy prices may go up or down. Prices are subject to change on 30 days advance notice. We have compiled a record of recent price changes. You can view this data in the table below.
– You can opt for either paper or online billing – it does not affect the price that you pay.
– The tariff is available for customers taking gas only, electricity only or dual fuel.
– Payment options include Monthly Direct Debit, Quarterly Variable Direct Debit and Cash / Cheque quarterly on receipt of your bill.
– This tariff is also available to customers with prepayment meters (where the tariff name is Pay As You Go Energy)
– There are no early termination fees with this tariff
– British Gas is signed up to the Warm Home Discount Scheme.
– British Gas is signed up to the Energy Switch Guarantee.
Other things worth knowing
Before 1 April 2018, this is the tariff that you would have ended up on if you did not switch when your old British Gas tariff expired. From 1 April 2018 British Gas introduced a new range of tariffs which they moved customers onto. These tariffs, called “Temporary …….”, are also variable rate tariffs with no exit penalty but with a fixed end date. These tariffs have now almost all expired and customers have been moved back onto the British Gas Standard Variable tariff. Where Temporary tariffs still exist they are all priced at Standard Variable rates.
History of Price Changes
British Gas Standard tariff price changes are listed (in reverse order) in the Table below.
|Effective Date||Annual Dual Fuel Bill||Change||Comment|
|1 Apr 2022||£1,700 - £1,750|
£423 - £473 increase
|This is a projection
based on wholesale energy prices
For latest change forecast please see
Energy Bills Forecast
|1 Oct 2021||£1,277|
|Energy Price Cap v7
1 Oct 2021 to 31 Mar 2022
|1 Apr 2021||£1,138|
|Energy Price Cap v6
1 Apr 2021 to 30 Sep 2021
|1 Oct 2020||£1,041||£82 cut||Energy Price Cap v5
1 Oct 2020 to 31 Mar 2021
|1 Apr 2020||£1,123||£19 cut||Energy Price Cap v4
1 Apr 2020 to 30 Sep 2020
|1 Oct 2019||£1,142||£72 cut||Energy Price Cap v3
1 Oct 2019 to 31 Mar 2020
|1 Apr 2019||£1,217|
|Energy Price Cap v2
1 Apr 2019 to 30 Sep 2019
|1 Jan 2019||£1,102||£70 cut||Energy Price Cap v1
Opening level of the Energy Price Cap
|1 Oct 2018||£1,172|
|Both gas and electricity prices increased.|
|29 May 2018||£1,130|
|Both gas and electricity prices increased|
|1 Jan 2018||£1,072||Opening level for this table|
Annual bills are based upon a dual fuel customer paying by Monthly Direct Debit with average annual usage; 12,000 kWh for gas and 2,900 kWh for electricity. We have re-indexed all historic bill values to this usage level.
The sooner you do your switch, the sooner you can start enjoying lower energy bills.