Energy bills are rising and many consumers will see their gas and electricity payments shoot up even further from October. Consumers are being warned of sharp rises with the possibility of their direct debits going up before the new cap on energy prices begins.
Those who are with British Gas are also being urged to check their tariff to see if it's the most suitable option for them ahead of further hikes when the new energy price cap comes into play, as well what support options are available.
The energy price cap, enforced by energy regulator Ofgem, limits the rates a supplier can charge for each unit of gas and electricity you use and the next review/change is due in October this year. Cornwall Insight, energy analysts, say the price cap in October will increase further, making the average annual bill £3,582 - £200 higher than their previous estimate.
READ MORE: Martin Lewis urges Brits to check 'sickeningly costly' energy change option
It means the average household would be paying £355 a month, instead of £164 a month currently. However, the analysts are predicting further rises for January, 2023, with annual bills increasing to £4,266.
But what will this mean if you're with British Gas?
This will depend on how you currently pay for your energy with them. Consumers pay for their energy bills in different ways, and are either on a fixed-rate tariff or a standard one, or a tariff that is specialised to their supplier. Payment methods vary too, depending on whether consumers pay by direct debit, have a smart meter or a pre-payment meter.
Latest advice from Martin Lewis is pointing towards customers getting a fixed rate tariff with their provider if they can to combat further damage to bills in the long-run. But will this make a difference at British Gas? See our guide below to find out more.
Energy prices at British Gas
British gas owner Centrica have previously that direct debits could go up before the start of October, according to the BBC. They also state on their website that due to continuous increases in global demand, industry sources have advised a further rise in the October price cap taking the average household energy bill to approximately £3,500, and a further increase to around £4,500 in January 2023.
Their average household estimated cost is based on a dual fuel customer paying by direct debit and using 12,000 kWh of gas and 2,900 kWh of electricity. British Gas customers who are also on the following variable tariffs will see an increase:
- Safeguard Credit
- Safeguard PAYG v2
- Safeguard PAYG
- Flexi PAYG Mar 2023
- Standard PAYG
- Standard Credit
- Standard Variable
- Welcome to British Gas
- The Peoples Tariff
- Welcome Together
- Standard Variable HM.
Fixed tariff option at British Gas
British Gas offer a fixed energy tariff that may work out cheaper than the energy price cap in the long-term. The deal is based on an average of the cost, existing customers may get a higher or lower cost based on a more accurate quote of their current usage.
British Gas: Fixed Oct 23v4 one-year fix: has a fix at 93% more than the current price cap. £3,811 a year and £200 dual-fuel exit fees. British Gas says it's available to existing customers on its standard variable tariff.
To get an existing customer fixed tariff you will need to contact British Gas and ensure it's the same tariff you are getting, as there can be other tariffs with similar names.
The above tariff may also be able to squeeze money off bills over the next year as long as they are with British Gas. Customers will pay a lot more in the next few months to fix now but the MSE team say the hope is that they will gain later.
British Gas £1,500 grant and how to get it
The British Gas Energy Trust Individual and Families Fund offers help to those who are in serious need. And you don't have to be a British Gas customer to apply either - although there's a strict criteria in order to get the fund.
Applicants must show a clear interest in wanting to clear their debts with the grant. For many households, it would be a weight lifting relief.
The criteria is quite stringent, and to be accepted you need to be spending more than 10% of your income on energy, have less than £1,000 in savings (as a household), have previous energy debts of at least £250 or more and show that you have previously sought advice from a debt charity or money adviser. You also can't have received a grant from the British Gas Energy Trust within the last two years.
It can take weeks to claim, but that being said it's a definite lifeline for households desperate to clear their debts before the added energy costs this winter. If you don't qualify for this scheme, British Gas also offer a handful of other support services for those struggling to pay household energy bills.
A British Gas spokesperson said: " We would urge anyone who is struggling with their energy costs to contact us so we can help and put them in touch with the British Gas Energy Trust. The British Gas Energy Trust is a independent charity funded solely by us which offers grants up to £1,500, debt and money advice, benefit checks, fuel vouchers and free energy efficiency measures to all consumers.
British Gas contact
If you would like to speak to British Gas then you are best visiting their website here to see if any of your questions may already be answered. If you would still like to speak to someone you can use their live chat option or:
- Call the energy customer service line on 0330 100 0056 - their team members are available between 9am-5pm, Monday to Friday.
- For home services you can call 0333 009 5784 - their team members are between 9am-5pm, Monday to Friday.
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