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British Gas price changes in 2021

British Gas price changes in 2021

Find out how British Gas energy prices have changed in 2021 and what it means for you.

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It's a good idea to compare energy regularly to see what the latest prices mean for you, even though there are fewer deals available. Enter your postcode to get started.

British Gas price rise in 2021

Like most energy suppliers in the UK, British Gas tariffs are subject to Ofgem's energy price cap. This cap sets the maximum price suppliers can charge for their standard variable and default tariffs - typically the most expensive tariffs on offer.

In August 2021, Ofgem announced the price cap rate would be increasing to its highest ever level of £1,277 from October 2021. British Gas therefore announced a 12% increase to the price of its Standard Variable tariff to £1,277 to come into effect on 1 October 2021.

In February 2021, Ofgem announced the price cap rate would be increasing from April 2021 to £1,138 per year. In reaction to the price cap change, British Gas announced a 9% price rise on its Standard tariff.

The British Gas price rise only affects customers on the supplier's Standard tariff. If you're on a fixed tariff from British Gas or any other supplier, the price you pay per unit of energy will remain fixed until the plan ends - after this it's likely you'll be automatically rolled onto a standard variable tariff if you don't shop around and switch to a better deal.

Previous price changes from British Gas

In August 2020, British Gas announced it would be cutting the average price of its standard variable or default tariffs by approximately 7%. This price cut came into effect in October 2020 and was in reaction to a cut in Ofgem's price cap level.

The latest price change meant an average £84 price cut for customers on British Gas' default tariff, bringing the average bill to £1,041 per year.

In February 2020, British Gas announced a price drop of around 2% for customers on its standard variable tariffs, also to match the falling price cap. This brought down the average bill for these customers by £19 per year.

British Gas reduced its prices to an average of £1,158 — £3 lower than the maximum allowed under the new price cap level.

In August 2019, British Gas followed the price cap by reducing the cost of its standard tariff by 6%. This brought the average bill for British Gas Standard customers to £1,177 from 1 October, when the rates came into force.

This followed a price rise in February 2019, when the supplier announced a 10% price rise that came into effect 1 April 2019.

This price rise affected dual fuel customers on standard variable rate tariffs — around 3.9 million households. This made British Gas's standard tariff £324 more expensive than the cheapest energy deal currently on the market.

British Gas was the fourth of the big six energy suppliers to announce a price rise in February 2019, after Ofgem announced an increase to its energy price cap rate.

The price change increased rates to match the new cap rate of £1,254, a hike of £119 for British Gas customers.

Compare energy prices here

It's a good idea to compare energy regularly to see what the latest prices mean for you, even though there are fewer deals available. Enter your postcode to get started.

Do I need to do anything about the British Gas price rise?

All customers on a British Gas standard variable tariff will be impacted by this price rise, and it's likely you've started to see higher bills from April.

If this price rise affects you, you can shop around for a better deal and switch before the price rise comes into effect.

If you're on a fixed deal from British Gas, your rates will remain fixed for the remainder of the contract. But remember that you'll automatically be rolled onto a standard variable tariff when your fixed deal ends, which could offer worse value. You can switch to a cheaper deal around 49 days before your plan ends without having to pay an exit fee.

Here's a list of the latest cheap energy deals you can compare and switch to with Uswitch:

Supplier Plan name Tariff type Price

Based on average bill sizes for a medium energy user on a dual fuel plan paying by monthly direct debit, and averaged across all regions. This information is updated hourly with energy plans which are available to switch to through Uswitch. To appear in this table, plans must be available in at least 7 of the 14 regions.

Which energy suppliers have changed their prices in 2021?

Following the new price cap rates being announced in February 2021, many energy suppliers raised their prices to meet the new cap level.

You can read about previous price changes from the rest of the big six below:

Will there be another British Gas price rise in 2021?

The energy price cap is reviewed twice a year (February and August), with new rates coming into effect in April and October. Following this, we have already seen a price rise in April 2021. However, it remains to be seen whether there will be another energy price rise announced in August, or whether the price cap rate will be reduced.

Remember that fixed tariffs usually provide better value than standard variable tariffs, and their rates are fixed for an initial period (usually 12 to 18 months). If you're on a standard variable tariff from British Gas, it's always a good time to compare energy prices and see if you could get a cheaper deal.

See more information about British Gas, including British Gas price change history, customer satisfaction reviews and where their average bill costs ranks among the big six on Uswitch's dedicated British Gas supplier page.

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