Households signing up to the new two year ‘Fix & Fall’ deal will see prices automatically reduced if the Ofgem energy price cap drops next year.
Households signing up to the new two year ‘Fix & Fall’ deal will see prices automatically reduced if the Ofgem energy price cap drops next year.(Image: Rui Vieira/PA Wire )
British Gas has launched a new fixed energy tariff designed to protect households from rising bills while still allowing customers to benefit if energy prices fall in future.
The new ‘Fix & Fall’ tariff fixes gas and electricity rates for two years, giving customers certainty over payments during a period of continued market uncertainty. However, unlike traditional fixed deals, British Gas said the tariff will automatically reduce rates after 12 months if the Ofgem energy price cap falls on July 1, 2027.
The energy giant said the move means households can avoid potential price increases over the next two years while still benefiting from lower prices if wholesale energy costs come down. British Gas said customers on the tariff could save up to £50 a year on the average dual fuel bill if prices fall next summer.
The supplier described the deal as the only tariff of its kind currently available on the market. Customers signing up to the tariff will also qualify for the company’s PeakSave scheme, which offers half price electricity every Sunday between 11am and 4pm.
The company said the tariff was developed following feedback from customers who wanted the reassurance of fixed prices without missing out on possible future reductions.
Ofgem confirmed on Wednesday that the energy price cap will rise by 13 per cent from July 1, pushing up annual bills for 22million households across Great Britain.
The new cap, which will remain in place until September 30, means a typical household on the standard tariff paying by direct debit for gas and electricity, will see annual bills rise from £1,641 to £1,862. This amounts to an additional £209 over the year ahead, some £18 per month.
Energy firms have increasingly been offering fixed deals again after wholesale prices stabilised, although many households remain cautious after sharp bill increases over recent years.
Gary Booker, Managing Director of British Gas, said: “With Fix & Fall, we want to give customers the real peace of mind that we know they want.
“Their prices won’t go up for the next two years, but if prices do fall in the next year, then we’ll automatically lower the rates.
“So, customers can get the reassurance of a fixed tariff, with the flexibility to save if prices fall.”
British Gas is also reminding households struggling with bills that financial help and support schemes are available.
Earlier this month the company announced a £40million support package to help people facing financial hardship and rising living costs.
The funding will support grants, energy efficiency advice and fuel poverty programmes through the British Gas Energy Trust, an independent charity funded by the supplier.
British Gas is also expanding its Warm and Working scheme, which provides free boiler servicing, heating checks and energy efficiency upgrades for vulnerable households.
The company said engineers will visit around 1,000 homes over the coming months to carry out free upgrades and checks, including for some households that are not British Gas customers.
More information about the Fix & Fall tariff, PeakSave and available support schemes can be found on the British Gas website.
