British Gas offers cheaper deal ahead of price cap rise

With the Ofgem price cap set to rise by 5% in the New Year, British Gas has offered its customers the opportunity to switch to a cheaper fixed tariff.

The new one-year fixed tariff is priced one per cent above the current Ofgem price cap, but this is still substantially cheaper than the new price cap that comes into force on January 1, 2024. Moreover, if British Gas introduces a cheaper fixed deal before the term expires, it says its customers will be able to switch to it for free.

Speaking on his show on ITV, money-saving expert Martin Lewis said the deal is worth considering:

“It is worth having a look at the details on that one and seeing if it works for you…You may want to fix at that price. If you are risk averse, one per cent over the current price cap looks good right now, but I don’t have a crystal ball.”

He added that the deal compares well with deals from other suppliers that don’t involve additional conditions, such as purchasing boiler cover or switching utilities. For example, Octopus offer a tariff priced at 2% over the current price cap, while OVO, So Energy, EDF, and Sainsbury’s have deals at 3–4% more.

Another way to say money on energy bills is to ensure your gas boiler is working efficiently. Xgas can provide a boiler service in Chester and other places in the area, so get in touch today to arrange an appointment.