Last Updated: 9 February 2022
British Gas Standard Tariff set to increase by £693 (54%) from 1 April 2022
Ofgem has announced the next level of the Energy Price Cap. It was worse than expected.
From 1 April 2022, households with average energy usage, paying by monthly direct debit, will see their energy bills increase by £693 to £1,971. That’s up a massive 54%. The increase will add an extra £58 per month to the energy bill of a household with average energy usage.
Those paying by prepayment meter, or quarterly by cheque, will do even worse. Their new energy bills will come in at £2,017 and £2,101 respectively.
This increase is on top of the £96 increase on 1 April 2021 and the further £139 increase on 1 October 2021. Three increases in a row adding £928 in bills in the space of a year.
How will British Gas Standard Variable Tariff customers be affected?
British Gas has not yet announced whether it will increase its prices to the maximum allowed. We will know soon enough, but we expect that it will have to.
The increase will affect the majority of British Gas’ customers most of whom are now on the British Gas Standard Variable Tariff.
As bad as this is for working families (and it is very bad indeed), there is a slight glimmer of hope on the horizon.
The energy crisis, aided and abetted by the energy price cap, caused the energy market to cease functioning. It also resulted in 27 energy suppliers going bust – more than half of all the energy suppliers operating in the market.
Now that the energy price cap is being lifted, energy suppliers, including British Gas, have at least half a chance of resuming normal operations. It also means that we are getting closer to energy switching returning. When the energy switching market does come back, it will be a huge relief for consumers. Right now, households have just one way to reduce their energy bills; by significantly cutting back on heating and lighting. However, for many, that will not be possible in any meaningful way. Energy switching therefore represents the quickest alternative way to reduce energy bills. Even small percentage savings on HUGE energy bills will amount to meaningful cash sums.
When it happens, we will be the first to let you know. Stay tuned.
But for now, we are sorry to say that your tariff will increase again in…
Should I be switching from the Standard Variable Tariff to a fixed energy tariff?
At the present time, even if there was a functioning market, which there isn’t, we would recommend you stay put. The current price of the British Gas Standard Tariff is such that there are no alternative energy tariffs that come even remotely close on price. However, we expect things to change for the better in the coming weeks and months, and we will update this page as soon as the situation changes.
If you would like to know when some normality returns to the market, and energy switching once again allows you to cut your energy bills then do one or more of the following. Sign up to our newsletter (in the footer of this page), check our home page from time to time for updates, or follow us on Twitter
If you would like to know more about the energy price cap and how it affects you, please check out our Energy Price Cap Guide for all the latest information.
In view of the current energy crisis, this tariff can not currently be applied for. Comments made below 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.
|Annual Dual Fuel Bill
|1 Apr 2022
|Energy Price Cap v8
1 Apr 2022 to 30 Sep 2022
Prices to be confirmed.
|1 Oct 2021
|Energy Price Cap v7
1 Oct 2021 to 31 Mar 2022
|1 Apr 2021
|Energy Price Cap v6
1 Apr 2021 to 30 Sep 2021
|1 Oct 2020
|Energy Price Cap v5
1 Oct 2020 to 31 Mar 2021
|1 Apr 2020
|Energy Price Cap v4
1 Apr 2020 to 30 Sep 2020
|1 Oct 2019
|Energy Price Cap v3
1 Oct 2019 to 31 Mar 2020
|1 Apr 2019
|Energy Price Cap v2
1 Apr 2019 to 30 Sep 2019
|1 Jan 2019
|Energy Price Cap v1
Opening level of the Energy Price Cap
|1 Oct 2018
|Both gas and electricity prices increased.
|29 May 2018
|Both gas and electricity prices increased
|1 Jan 2018
|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.