Introduction of Ofgem’s Price Cap

The default tariff cap (price cap) for customers in the UK still on standard variable tariffs and other default tariffs comes into effect on 1 January 2019. Going forward the regulator, Ofgem, will set the level of the price cap every six months with their first review to be announced in February and implemented in April. This will result in the level of the price cap either going up or down according to a published formula which takes into account a number of factors including the cost of energy and government policies. As such, British Gas intends to adjust its standard variable tariff and default tariff pricing to broadly reflect these changes.
 
As a reminder, we withdrew our standard variable tariff from the market for new customers on 31 March 2018 as one of our commitments to increase customer engagement. We continue to encourage our customers to look to the wide range of energy products and services we have on offer which, other than default tariffs, are unaffected by the price cap. These include an online-only tariff, and bundles combining energy with boiler servicing or with Hive connected home products. In addition, all customers can benefit from being a member of British Gas Rewards which nearly 2 million customers have signed up for so far.