One of the cheapest energy deals on the market has just been launched but households will need to act fast if they want to lock it in.
British Gas has unveiled a new tariff that will only be available for a few days.
The fixed-rate offer undercuts the upcoming Ofgem price cap by £168. From October, the cap will rise by two per cent to £1,755 a year for a typical household paying by Direct Debit, which is £35 higher than the current £1,720 level set for July to September.
The deal, open to both new and existing British Gas customers, will close at 10pm on Wednesday, 17 September.
The supplier is describing it as the cheapest fixed tariff currently available from any major energy firm, positioning it as a rare chance for households to get ahead of rising costs this winter.
The energy supplier has structured multiple options to appeal to different household needs. For most homes, there’s a straightforward 12-month fixed deal, while those who want a bit more flexibility can choose the Cap Tracker.
This option promises to stay up to £50 cheaper than the Ofgem price cap, and comes with only small exit fees.
Drivers of electric cars are being offered a special 13-month fixed tariff with much cheaper overnight rates.
Electricity between midnight and 5am costs just 7.9p per kilowatt hour, making it ideal for charging a vehicle while keeping costs down.
British Gas customers can save some extra cash with a new trial | GETTYOn top of that, the PeakSave programme cuts electricity prices by half every Sunday between 11am and 4pm.
Customers aren’t tied down either, British Gas says they can move between its fixed-rate tariffs without paying exit fees. This added flexibility could help households keep their bills under control in the months ahead.
These deals come at a time when energy debt across the UK has climbed above £4.2billion. The huge figure is a lingering effect of the 2022 energy crisis, when bills hit record highs and left millions of households still struggling to catch up.
Vikki Brownridge, CEO at StepChange Debt Charity, highlighted the ongoing challenges: "There's no doubt that energy bills remain a challenge for our clients, and we've seen a steep increase in energy arrears over the last two years our latest data shows a seven per cent rise in average arrears year on year."
Britons could save money on energy bills | GETTY She emphasised that managing current payments whilst addressing historical debt creates persistent difficulties for lower-income households, potentially creating an inescapable debt spiral that affects their ability to meet other financial obligations.
Ms Brownridge noted that energy arrears represent the most prevalent form of household debt encountered by StepChange.
She stressed that maintaining regular payments whilst servicing existing arrears proves particularly challenging for those on limited incomes.
Ofgem is responsible for setting the UK energy price cap | GETTY She said: "The fact is that keeping up with payments whilst repaying historic debt is a constant struggle for households on lower incomes, and not something that can be dealt with easily.
"This has a knock-on effect on people's ability to pay other financial commitments, and risks trapping people in a cycle of debt."
The charity executive called for urgent government action, stating: "Energy affordability does remain a problem that needs attention from government, and we urgently want to see a long-term solution to protect consumers from unaffordable energy costs."