Many British Gas customers face a bill increase of almost £700 from April 1 - this is everything you need to know about the coming changes.
Millions of households will see their energy bills hiked by £693 from April 1.
This applies to homes on default tariffs, who are subject to a price cap set by energy regulator Ofgem.
This cap limits how much the average home pays a year for their energy, and will rise from £1,277 to £1,971 on April Fool's Day - an eye-watering rise of around 54%.
Prepayment customers will be worst hit, with an increase of £708 from £1,309 to £2,017.
British Gas customers are no exception, and the firm has said the typical home paying by credit will face an extra £693 a year from April 1. This works out at £58 more a month.
Prepayment customers will see an increase of £708 (excluding VAT) per year, or £59 per month.
The exact level of any increase depends on your property and how much energy you use.
That's because the price cap limits the rates a supplier can charge for their default tariffs. This includes the standing charge and price for each kWh of electricity and gas (the units your bill is calculated from).
It doesn't cap your total bill, which will change depending on how much energy you use.
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 the price cap hike:
- 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 contract period.
The only way you will see changes to what you need to pay would be if you chose to change your tariff, alter 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 has said it has invested £2million into funding grants to help keep vulnerable customers keep warm, which they say they have now added a further £2million to.
Their fund was opened in December 2021 and will stay open until all of the money has been given out.
To find out how to apply, click here.
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 funded by British Gas.
It gives advice on fuel debt, directs customers to government grants, or - in some circumstances - gives 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.
