British Gas Electricity Tariffs & Rates Guide 2026

British Gas Electricity Tariffs Explained

British Gas supplies energy to millions of homes across England, Scotland, and Wales. Understanding how their electricity plans work helps you pick the right arrangement for your household. The core options fall into three categories: standard variable, fixed-rate, and pay-as-you-go prepayment plans.

Standard Variable Tariff (SVT)

The British Gas Standard Variable tariff is the default plan for households that have not chosen a fixed deal, or whose previous fixed term has ended. Rates on this tariff rise and fall in line with the Ofgem price cap, which updates every three months in January, April, July, and October.

On the current standard variable tariff, paying by Direct Debit in the East Midlands, electricity costs 25.355p per kWh with a daily standing charge of 51.452p. This tariff offers maximum flexibility. You are not tied into a long contract, and you can leave at any point without paying an exit fee. However, your rates change whenever Ofgem alters the national price cap ceiling.

Standard Fixed-Rate Tariffs

Fixed tariffs lock in your unit rate and daily standing charge for a set period, typically 12 or 24 months. While your monthly bill still fluctuates depending on how much energy you consume, the price you pay for each unit of electricity stays exactly the same throughout the contract.

Fixed plans suit households looking for predictable prices, especially ahead of winter when wholesale market demand increases. Standard fixed deals usually carry an exit fee if you switch to another supplier before the contract finishes. Under Ofgem rules, you can switch without paying an exit fee during the final 49 days of your fixed term.

Prepayment (PAYG) Tariffs

Prepayment tariffs let you pay for electricity in advance using a traditional key, smart card, or mobile app. This option helps prevent debt build-up by keeping tight control over daily spending.

Ofgem sets separate unit-rate caps for prepayment and Direct Debit customers, while equalising their capped standing charges. If you have a smart prepayment meter, you can top up online or through the British Gas app without visiting a local shop.^[1]

Smart Tech and EV Tariffs

Households using electric vehicles, solar panels, or green heating tech can access dedicated smart tariffs from British Gas. These plans offer cheaper electricity during quiet overnight hours when national energy demand is low.

EV Power Tariff

The British Gas EV Power tariff gives electric vehicle drivers an off-peak electricity rate of 9.5p per kWh between 12:00 am and 5:00 am every night. This low rate applies to all household electricity used during those five hours, not just vehicle charging. You can run washing machines, dishwashers, or home batteries at the reduced rate.

If you pair the tariff with a compatible Hive home charger and an active smart meter, the Hive Power+ add-on gives a further 25% discount on EV charging. This brings your effective off-peak vehicle charging rate down to roughly 7.125p per kWh. Daytime electricity on EV Power carries a higher peak rate than standard plans, so you need to shift heavy energy tasks to overnight hours to make a net saving.

Home Battery and Heat Power Tariffs

British Gas provides specialised multi-rate options for homes with battery storage systems or heat pumps:

PeakSave Schemes

The PeakSave scheme offers temporary discounts for smart meter customers without requiring a complete tariff change. Eligible customers signed up to PeakSave Sundays get 50% off electricity used between 11:00 am and 4:00 pm every Sunday. A smart meter alone does not guarantee eligibility: Heat Power customers, for example, cannot also take part. Savings are applied directly to your account as bill credits.^[1]

For households wanting an extended weekend window, the PeakSave Super Sunday tariff offers 8 hours of half-price electricity from 9:00 am to 5:00 pm every Sunday.

Smart Export Guarantee (SEG)

Households generating their own electricity with solar panels or wind turbines can sell unused power back to the grid. British Gas's Export Premium SEG tariff pays 12p per kWh for exported renewable energy from eligible systems rated up to 15kW, provided British Gas also supplies your electricity.^[2]

The Fix and Fall and Cap Tracker Tariffs

British Gas offers flexible tariffs designed for people who want fixed security alongside market tracking options. Understanding these mechanisms helps you choose between fixed protection and price drop benefits.

Cap Tracker Tariff Mechanics

The British Gas Cap Tracker Mar2028 v1 plan guarantees lower daily costs than the default standard variable tariff. On this plan, the electricity unit rate is 25.355p per kWh, matching standard variable levels, but the daily standing charge drops to 44.603p per day. For dual-fuel households, the combined standing charge discount is set £50 a year below the Ofgem price cap limit.

Because the unit rates move alongside Ofgem's quarterly cap updates, your prices rise or fall when national cap levels change. The plan runs until March 2028 and carries an exit fee of £25 per fuel (£50 for dual fuel) if you leave before the end date.

Fix and Fall Tariff Mechanics

The Fix and Fall Nov28 v1 plan is a 24-month fixed contract with built-in price drop protection. In the East Midlands, paying by Direct Debit, it sets the electricity unit rate at 31.563p per kWh and the daily standing charge at 46.915p.

British Gas compares the Ofgem price cap in October 2027 with October 2026, and automatically lowers your rates if prices have fallen. It says this could save around £50 over 12 months at typical dual-fuel use. However, starting unit rates on Fix and Fall are set higher than standard variable rates, and the plan carries an exit fee of £125 per fuel (£250 for dual fuel) if you cancel early.

Understanding Unit Rates and Standing Charges

Every British Gas electricity bill is made up of two distinct charges: unit rates and standing charges. Knowing how both parts work makes it far easier to estimate total costs.

Payment Methods and Tax Rules

How you pay your bill alters the exact rate you receive. Direct Debit usually costs less than paying on receipt of a bill, while prepayment has its own capped unit rates, so compare them directly. Paying on receipt of bill via cheque or bank transfer leads to higher standing charges.^[1]

Government policy also impacts total costs. Household electricity in Great Britain has been subject to 0% VAT since 1 October 2026, down from the normal 5% rate, reducing annual electricity bills by around £45 for a typical home. Budget 2026 announced an extension of this relief to 30 June 2027, with legislation due in early 2027. Household gas stays at 5% VAT. On top of this, the government announced plans to phase out gas standing charges starting in 2027, shifting fixed gas costs onto unit rates, though electricity standing charges remain in place.

British Gas Business Electricity Rates

British Gas supplies commercial premises across Great Britain alongside domestic homes. Business energy contracts work differently from residential tariffs, so commercial customers need to manage contracts carefully.

Fixed Business Contracts vs Deemed Rates

Business customers can lock in electricity and gas unit rates with fixed agreements lasting between 1 and 3 years. Fixed plans protect business cash flow against market swings.

If a business moves into premises supplied by British Gas without agreeing a contract, deemed rates usually apply. If an existing contract ends without renewal, separate out-of-contract or variable rates may apply instead. These default rates are usually higher than negotiated contract rates. Businesses on deemed rates should sign a new fixed contract or switch suppliers as soon as possible.^[1]

Microbusiness Rules

Small commercial operations classified as microbusinesses receive extra consumer protections under Ofgem regulations. Suppliers must provide clear contract end dates and written renewal terms well before contract expiration, making it easier for small businesses to avoid expensive out-of-contract pricing.

Should You Fix Your British Gas Tariff?

Deciding whether to lock in a fixed tariff or stay on standard variable rates depends on current wholesale forecasts and your personal tolerance for bill changes.

The Ofgem price cap for Q4 2026 stands at £1,723 per year for a typical dual-fuel household paying by Direct Debit, up 4% from the previous quarter. Market analysts anticipate wholesale cost pressures could push price cap rates higher in early 2027.

How to Decide