British Gas now offers new and existing dual energy customers a yearly rate of £1,099 on average, though prices vary on location.
The energy company has joined other UK energy suppliers in offering fixed-rate tariffs for the first time in several years as energy prices come down.
Fixed-rate tariffs could provide security to those worried about rising energy bills.
In London, a house consuming the typical amount of gas and electricity would pay £2,049 for a one-year fix from British Gas, according to Go Compare.
Broken down, this includes daily standing charges of 28.83p and 37.91p, alongside unit prices of 7.51p and 31.19p for gas and electricity respectively.
Though customers could indeed benefit if prices soar again this winter, they would face a £200 early exit free on the British Gas deal, making switching difficult if wholesale costs drop.
British Gas Smart Aug24 v9 offers a 12-month fix for £2,072 a year. There is a £200 dual-fuel in exit fees and it’s equal to the price cap. The deal is available to all existing customers but they’ll need to have or get smart meters.
British Gas The Fixed One v23 offers a 12-month fix for £2,099 a year. It has £200 dual-fuel exit fees and is one percent more than price cap.
It is available to new and existing customers directly through British Gas.
London-based Utility Warehouse, which caters for over 900,000 customers, charge less than the UK’s largest supplier meanwhile, offering a one-year fix for £1,974.
Though the deal does require other services be bought from the supplier, Utility Warehouse bills customers less for switching early, at £150.
Since the Ofgem price cap was brought back, many suppliers have offered fixed deals which were previously unavailable.
Ofgem’s price cap has replaced the Government Energy Price Guarantee which set maximum consumer prices from October 2022 to June 2023.
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The average household energy bill will fall by £426 a year from July 1 after Ofgem cut its price cap.
Ofgem cut its energy price cap from £3,280 to £2,074.
The change comes as a relief for customers who saw typical bills soar over the past few years, increasing from £1,271 a year in October 2021.
The energy regulator Ofgem has urged customers to “think before you fix” as more deals come back to the market.
In a tweet, it said: “With the lower #PriceCap figure, fixed-rate energy tariffs might appear back on the market, but check if they are right for you.
“Prices are still unpredictable & signing up for a fixed rate now might mean you miss out if prices fall.”
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