British Gas customers – there’s a hidden way to cut £130+ off your bill…

British (and Scottish) Gas is the UK’s biggest energy supplier, serving over 10m homes. And no surprise for a provider still benefitting from its past monopoly advantage, it ain’t cheap!

After all, why should it be – many of its customers stick with it, price hike after price hike, bill after bill.

Currently though, there is a way to stay with BG and hugely slash your cost, but you can’t just call it and ask. Any of its customers in the UK (not Northern Ireland) can do this, providing you…

  • Already do or are willing to pay by monthly (variable) direct debit
  • Use it for dual fuel (so electricity and gas)
  • Are willing to be billed online

What is this magical British Gas money-saving potion?

Quite simply it will sell you the same gas, same electricity, same safety etc as you get right now, but charge less for it and it’ll guarantee it won’t hike the rate for over a year.  Yet you can’t just call British Gas and ask for it.

It’s a new tariff called British Gas All Online January 2019 and it’s only available via comparison sites (we’ve no indication of how long it’ll last, so it could be pulled at any time). So to make it easy, just quickly plug details from your bill – guesstimate if you don’t have it to hand – into our special Cheap Energy Club ‘My Current Supplier’ comparison.

This filters out all but British Gas’s tariffs. Then you can see your exact saving (it depends on where you live and how much you use) and then click the button to turn that tariff on, and pay less.

PS: While this should save you decent money, you can save far more if you’re willing to switch provider. So when you’re looking at the results page of your British Gas comparison, why not play with the filters on the side, to see how much you can save elsewhere too?

The new tariff is a fix, which means you’re guaranteed no price hikes until January 2019 (unlike the normal British Gas tariff, which can be increased any time), though of course if you use more, you’ll pay more. If – as is unlikely if you’re doing this – you want to leave British Gas before then, you’ll pay a £40 early exit fee.

Those who don’t already have a British Gas smart meter will need to book installation for one by 31 July 2018. These automatically send meter readings to your supplier, so you get exact bills and pay only for what you use (for more on that, see our Smart Meters guide). And you’ll need to join the free British Gas Rewards loyalty scheme, but that just earns you things such as free movies from the Sky Store.

PS: If you’re wondering why it’s only available via comparison sites, it has likely done this so it can target switchers from elsewhere, but thankfully it has allowed existing customers to get it too.

How much cheaper is it likely to be?

Someone with typical usage (defined by regulator Ofgem) currently on a British Gas standard tariff (as most with it are) currently pays £1,100/year.

On the same usage, the new tariff will cost you on average (it depends where you live) £995/year. Plus, switch via our Cheap Energy Club and you get £25 cashback, making the saving a typical £130.

Though obviously if you’ve higher bills you’ll likely save more than that, lower bills less than that (yet the cashback is always £25 regardless).

It is worth noting on the same usage the very cheapest deals from elsewhere would save you about £300 (hence the big bold writing in the box above).

Why is there a Sainsbury’s Energy deal in my ‘British Gas only’ results?

Sainsbury’s Energy is just British Gas in disguise – it’s the same company, just selling its wares under a different name. And there’s a new Sainsbury’s deal out at the same time which for some will top the new British Gas deal – it depends on where you live and how much you use.


It’s called Sainsbury’s Price Freeze November 2018, and as the name suggests it’s also a fixed tariff, though the price guarantee is shorter than British Gas’s. If this is cheaper for you, you may decide to plump for it instead. Frankly, it’s a very similar deal, though doesn’t require you to have a smart meter.

How come MSE pays cashback on this?

Like all energy comparison sites, if you can switch through us, we get paid. Though unlike some we still include all tariffs, whether they pay us or not (unless you choose to filter them out).

Yet we aim to give you about half of what we’re paid in cashback. Just to be clear, you get exactly the same deal as you would if you went to the firm (but in this case you can’t do that) plus the cashback on top that you wouldn’t get otherwise.

The rest helps cover our costs and hopefully makes us some profit. We’ve had to drop the cashback from £30 to £25 recently as suppliers can give us less – for more see MSE Jason’s blog.

The secret of how to pick your new energy provider from a list of firms you’ve not heard of

Comparing energy tariffs is easy. Yet as I’ve learnt over the last year, it’s picking your new supplier from a list of unknown names that is putting many off. So I wanted to bash out a quick blog to show you how to navigate through that.

The majority of people in the UK are overspending on energy by 30%, often £300+ a year – simply due to being on the wrong tariff. If you’ve not switched in the last 12 months and are with one of the big six – British Gas, EDF, E.on, Npower, Scottish Power or SSE – almost invariably that means you’re one of those people, as you’ll be on their very expensive standard tariff. If you’re with anyone else, you could still be overpaying too, so the right thing to do is check.

The easy way to check is using a comparison site. That’s necessary as who your cheapest is depends on where you live and how much you use. It’s best if you have your bills to hand to do this, but even if not, most comparison sites will estimate for you and the sin of inaccuracy isn’t as big as the sin of doing nothing. Yet many people find, or at least perceive, switching to be complex.

I’ve always found this difficult to understand, as when even newcomers to my Cheap Energy Club have tried it, the comparison process is completed in an average of around five minutes. And changing itself is no biggie – it’s the same pipes, gas, electricity and safety, and you don’t lose supply. The only difference is price and customer service.

However, when over the last year I’ve observed people switching at my TV roadshows, my eyes have been opened to the real problem. It’s not doing the comparison. It’s picking who to switch to that’s the real problem for many.

Too many small firms you’ve not heard of?

The huge encouragement given for new entrants to the energy market is actually putting many off switching. And to an extent, there’s good reason. The energy market is swamped with new firms, and often at launch they offer super-cheap deals to build a customer base. Yet the customer service feedback on these firms is either limited or worse poor, as they can’t handle the number of customers flooding in.

If you do a comparison right now, almost invariably the first five cheapest providers on the list are those you’ve never heard of – and for many that’s enough to put them off and stop the process.

The simple answer is SCROLL DOWN to a name you know, or one – small or big – which has a good customer service rating.

In fact, with so many new providers, you could scroll down a couple of pages of names and still only find it’s £10/yr or £20/yr more than the very cheapest, still saving you nearly £300/yr on typical usage. To make it easier use this good customer service only comparison energy club link, which automatically selects the service filter.

What if I just want a name I recognise though?

In that case, even though many of the big six have hideous tariffs, they can also offer some good ones too. At the time of writing, the cheapest big six deal for most people on average is a one-year fix with Eon, saving £230/yr compared to the average big six standard variable tariff. Yet always do a comparison, as the cheapest does depend on your situation. Again, to help use this big names only comparison energy club link, which automatically filters out smaller firms.

And remember most cheap tariffs are fixes, meaning you’re guaranteed no price rises for a set time.

What if I just don’t want to switch firm?

Many people ask me questions like: “I’m with Npower – is it cheap?” I can’t answer that, as what you pay depends on which of a firm’s tariffs you are on. Npower, for example, has one of the most expensive standard tariffs – for someone with typical usage it’s £1,161/yr – yet right now it also offers a relatively cheap fix at £969/yr.

In fact, EVERY big six provider has a cheaper deal than its standard tariff. So through gritted teeth, let me say: if you won’t switch as you’re loyal to your existing firm, at least ensure you’re on its cheapest tariff. Call them up and ask them. (Or better, use the what’s my current provider’s cheapest comparison energy club link, which filters out all other firms.  Though if it has tariffs under another name – eg Sainsbury’s Energy is really part of British Gas –  they’re included.)

What if I’m on a prepayment meter?

If you pay by a key or card meter, as many of the country’s poorest and most vulnerable do, then outrageously there’s nowhere near as much competition, and you pay more – though prices have been capped, which has helped a touch. If you do a prepay comparison there are often savings to be made, but often less than £100/yr.

If you can, try and switch to a billed meter. It’s free to do with one of the big six providers, and you’ll usually be credit-scored to check you’re capable of keeping up with payments.

Is comparing safe though? Isn’t it all about energy comparison sites making money?

Comparison sites, including my Cheap Energy Club, do get paid roughly £50 to £60 if they can switch you. Yet the price you pay is the same as if you switched direct with the energy firm. It comes from their marketing budgets, and if not paying a comparison site they tend to be paying advertisers.

In the case of Cheap Energy Club, we roughly split what we get paid with you (our share goes towards the pretty high costs and hopefully makes us a profit too). So on a dual fuel switch, if we can switch you we give you £25 cashback (£12.50 single fuel). That actually results in you getting a better deal than if you went direct to the energy firm (so we have a filter that enables you to factor this into the saving you make).

You have to be careful with some comparison sites as they are now allowed to only show you tariffs that pay them, which means you may not see the whole of the market. For the sake of transparency, Cheap Energy Club always defaults to the whole of the market – obviously if you click a link with a filter on as explained, then that cuts some providers, but not based on whether they pay or not.