Millions of British Gas customers could slash bills with new tariff as energy prices expected to rise again

Households worried about energy bills could soon be facing another hit, with Ofgem expected to confirm a price cap rise tomorrow.

Industry forecasts suggest the energy price cap could rise to around £1,850 a year from July, an increase of roughly £200 for a typical household.

And with another increase potentially on the way, British Gas has launched a new tariff designed to tempt customers looking for protection from rising costs.

The supplier’s new “Fix & Fall” deal promises fixed prices for two years, but with a twist that could still let customers benefit if prices come down later.

What is the new British Gas ‘Fix & Fall’ tariff?

Normally, fixed energy deals lock your prices in for the full contract, even if prices fall later on.

But British Gas says this tariff works differently.

Customers who sign up will have fixed prices for two years, protecting them if bills rise again later this year. However, if the Ofgem energy price cap falls in July 2027, customers on the tariff will automatically move onto lower rates too.

British Gas says some households could save up to £50 a year if that happens.

The tariff also includes access to PeakSave Sundays, which offers eligible customers cheaper electricity at certain times on Sundays.

Why are energy bills expected to rise again?

The current Ofgem energy price cap is £1,641 a year for a typical household paying by direct debit.

However, industry analysts expect prices to rise from July after wholesale gas prices increased earlier this year.

Ofgem is due to confirm the new price cap tomorrow for the period covering July to September, and many households are already looking for ways to avoid another jump in costs.

That uncertainty is one of the reasons fixed tariffs are becoming more popular again after largely disappearing during the energy crisis.

What’s the catch with fixed tariffs?

While fixing can protect you from future rises, it doesn’t always guarantee the cheapest bills overall.

If prices fall significantly in future, some people on fixed deals could still end up paying more than customers on variable tariffs.

It’s also important to remember that fixing your tariff doesn’t cap your total bill. The more energy you use, the more you’ll still pay.

Some fixed deals can also include exit fees if you decide to switch before the contract ends, so it’s worth checking the small print carefully before signing up.

Should you fix your energy bills now?

For households worried about prices rising again, fixing can offer peace of mind and more predictable monthly payments.

But if energy prices fall quicker than expected, staying on a variable tariff could work out cheaper overall.

That means it’s important to compare deals carefully and think about what works best for your own budget and energy use before making the switch.

Can you switch or fix your tariff if you’re in energy debt?

If you owe money to your energy supplier, you may still be able to switch supplier or move onto a fixed tariff, but the rules depend on how you pay for your energy and how long you’ve been in debt.

Customers on standard credit meters can usually still switch supplier if they’ve been in debt for less than 28 days. Any unpaid balance is normally added to the final bill from the old supplier.

However, if you’ve been in debt to your supplier for more than 28 days, you may need to repay the debt before you can switch supplier.

The rules are slightly different for prepayment meter customers. Ofgem says households using prepayment meters can usually still switch if they owe less than £500 for gas and less than £500 for electricity.

Some suppliers may also limit access to certain tariffs if you’ve missed payments or built up arrears, although policies can vary between providers.

If you’re struggling to keep up with bills, it’s important to contact your supplier as early as possible. Energy firms are expected to work with customers in financial difficulty and may be able to offer repayment plans, payment breaks, hardship grants or extra support if you’re vulnerable.  Here’s some more info on what support is available if you’ve fallen behind: Grants, benefits and help to pay energy bills

You can also ask your supplier whether there are cheaper tariffs available, as moving onto a better deal could help make bills more manageable.