The cost of gas and electricity bills is set to rise next month following Ofgem's energy price cap announcement. The energy regulator has revealed that the price cap will increase by 54%.
The energy price cap is the maximum amount that suppliers can charge customers for each unit of gas and electricity they use. And with it rising on April 1 it means bills will increase from £1,277 to £1,971 for an average household. Energy companies will be contacting customers this month ahead of the increase, explaining what the changes mean for customers. Money Saving Expert founder Martin Lewis has offered his advice on what Brits should be doing before their energy costs soar, which you can read about here.
The increase in energy bills is due to a high demand for gas combined with a reduced supply, which caused wholesale prices to rise considerably above the price cap. This has been influenced by a surge in demand for energy as countries reopened their economies after lockdown and has also been exacerbated by a reduced gas supply coming from Russia into Europe.
Read more: Everything you need to know about the energy crisis if you are an SSE customer
The amount that customers' bills will increase by will depend on how much energy they use. Prepayment customers are predicted to see a jump of £708 from £1,309 to £2,017. So what does this mean if you are a customer with British Gas?
British Gas are one of the big six energy companies in the UK and supply millions of homes. Below is our guide to everything you need to know about the energy crisis if you are a British Gas customer.
How much will bills increase?
British Gas has revealed that based on a typical household, credit customers will pay £693 (excluding VAT) more on their annual energy bill, which will work out at £58 per month. This figure is only an average, some customers may be quoted a higher figure based on their current usage, tariff and location.
Prepayment customers will see an increase of £708 (excluding VAT) per year, or £59 per month. As mentioned above, price increases will be different for each household and vary depending on the amount of energy you use and how you pay.
Which tariffs will be impacted?
British Gas customers who on the following variable tariffs will see an increase in the standing charges they pay in line with Ofgem's energy price cap 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
What about customers who pay by direct debit?
British Gas recommends that customers who pay for their energy bills by direct debit increase the amount they pay by as much as they can, in order to keep on top of the higher cost of energy.
The say this will make it more manageable when your direct debit is next reviewed, which happens twice a year. Customers can also make one off payments, increase their regular direct debit to the recommended amount shown in their online account, or increase to an amount that is suitable to them.
Will any customers not be impacted by the increase?
Customers who are currently on a fixed price tariff with British Gas will not see their tariff change for the duration of their tariff period. The only way you will see changes to what you need to pay would be if you chose to change your tariff, changed the way you pay or are affected by any government changes.
If your British Gas tariff is due to end soon, then you will see higher prices when moving onto your new tariff, due to the increased wholesale cost of energy.
What is British Gas doing to help its customers?
British Gas is offering extra help to customers who are struggling in the light of the fuel cap increase. The energy provider have said they've invested £2 million into funding grants to help keep vulnerable customers keep warm in December 2021, which they say they have now added a further £2 million to.
Their fund will remain open until all of the money has been distributed to customers. To find out how to apply, click here. British Gas has also confirmed that it will be welcoming new customers, having stepped in as a Supplier of Last Resort for some of the energy suppliers that have recently stopped trading.
British Gas also offers customers payment plans that suit customers needs if they find themselves in difficult circumstances. The British Gas Energy Trust is an independently run charity which is funded by British Gas. The charity is able to help by advising on fuel debt, directing customers who are struggling to government grants, or - in some circumstances - allow grants for debt relief.
What advice has British Gas given to help those struggling?
British Gas has offered the following tips on how customers can become more energy efficient in order to get the most out of the gas and electricity they pay for:
- Do fewer, but fuller, loads of laundry.
- Use eco settings on your dishwasher or boiler in order to use less energy.
- Turn your appliances off at the wall rather than leaving them on standby.
- Just fill your kettle up with the level of water you need, rather than filling it all the way up.
- Switch to LED bulbs, as these last longer.
- Use your microwave more often or consider investing in a slow cooker - microwaves save energy due to being quicker and slow cookers are one of the most energy efficient kitchen appliances.
- Unplug your chargers as soon as your device is fully charged.
- Close your curtains at night as this helps your home to retain heat.
- Ensure your washing machine is set to no higher than 30°C.
- Upgrade your boiler - newer boiler models are more energy efficient.
