British Gas launches tariff £299 cheaper than energy price cap to beat high bills | Personal Finance | Finance

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British Gas has launched a new energy tariff priced £229 lower than Ogem’s current price cap.

The energy provider’s new Price Promise tariff is priced at £1,699 for the average dual-fuel household to help customers save during this winter period. 

Catherine O’Kelly, managing director of British Gas Energy, said: “We are always looking for ways to help our customers save and we want to make sure they feel the benefits of lower energy costs as soon as possible – and can take advantage of them while using more energy in the winter period.

“They also have peace of mind that if the price cap drops in April and is cheaper than this tariff, we’ll lower our rates to beat it.

“Our customers can make extra savings and contribute to a greener grid by joining in with our PeakSave scheme.”

The 15-month tariff has no exit fees if customers move to another fixed tariff with British Gas at a later date.

It is available to new and existing customers who are dual or single-fuel credit customers. Customers on this tariff can also take part in PeakSave and get half-price electricity on Sundays for the rest of this winter.

And in April, British Gas said it “promises” the tariff will be lower than the new price cap announced by Ofgem so customers can continue to make savings. 

Energy regulator Ofgem reviews the price cap every three months, which determines how much a supplier can charge per unit of energy. 

From January 1, the price cap increased by five percent to £1,928 a year on average for typical duel-fuel households. 

The price cap will next be renewed on April 1, and market analysts forecast annual prices to drop as much as 16 percent.

If this occurs, it would mean annual prices could drop to £1,620, resulting in a saving of over £300.

Energy prices are then predicted to fall a further seven percent in July to average £1,497.15 a year, before marginally rising again in October to £1,541.72.