Ends 5pm Thursday
New cheapest big-name fixed energy deal
British Gas 12mth fix. Save over 15% (typically £285/yr) compared to today's Price Cap
Already a British Gas customer? You can get it too (even if you're already fixed)

In a nutshell: British Gas has a fix available for a short time which is substantially cheaper than most pay, and if predictions are right, it will stay cheaper than the Price Cap for the next year. It’s vying to be the market’s cheapest (rare for a big name). The easy way to see is to compare this British Gas fix to what you’re paying and the rest of the market. The link will do that for you. It’s available to both new customers to British Gas and its existing customers.

Full info: Wholesale gas and electricity rates - those retail energy firms pay - have dropped in recent weeks. Yet the Price Cap that 2/3 of homes are on remains stubbornly high, as its time-lagged rates are based on prices from months ago, and it won't move until July when it's expected to drop 8% or 9% (more on what’ll happen to prices below).

With new fixes, however, firms set their rates based on current and predicted future prices, and on Tuesday a big name went far cheaper - the new British Gas 12mth fix undercuts the current Cap by an average 15.4% (including MSE cashback via this comparison link), and this has driven competition so other firms are responding too, making it a good time to compare (all the tariffs are available via the link).

So switch to it, and you can take advantage of lower energy rates right now. It's also substantially cheaper than where the Cap is predicted to be over the next year (see below). Now let us go through it step-by-step, including more on the British Gas deal.

Ends 5pm Thu. MSE Blagged British Gas 12mth fix
Average 15.4% cheaper than current Price Cap. Available for switchers and EXISITING British Gas customers (plus MSE enhanced service)

We've blagged a new British Gas Fixed Tariff v63 which locks your rate in until April 2026, via our Cheap Energy Club comparison. On average there's only one smaller firm that's cheaper (Outfox the Market - it will be shown in the comparison). This is the cheapest tariff from a big name, and British Gas's most competitive deal for a while.

It's available direct from British Gas too, yet it's cheaper via our comparison as you also get MSE's £20 dual-fuel cashback (£10 for gas or elec-only switches).

Of course, how it stacks up always depends on region and usage, which is why we do it via a full comparison. But in general, for those who want a big name - and, crucially, existing British Gas customers too - it looks strong. Here's the key info...

- It's an average 15.4% cheaper than the current Cap (which lasts until 1 July). So you'll save a decent whack as soon as you're switched over. The rate is also a chunk cheaper than the current predictions for the July Cap.

Average rate compared to Price Cap (Direct Debit)
	Current Price Cap	British Gas Fix
Standing charge	Gas: 32.67p/day Elec: 53.80p/day	Gas: 25.87p/day Elec: 48.58p/day
Unit rate	Gas: 6.99p/kWh Elec: 27.03p/kWh	Gas: 5.93p/kWh Elec: 23.35p/kWh
Important: Rates vary by region for both the Price Cap and this tariff. To see the actual rate for you, when you do the comparison, in the specific tariff, click the 'More info' link. kWh stands for kilowatt hour.

- It is only for monthly Direct Debit. Though it can be for gas-only, electricity-only or dual-fuel (ie, have both) customers.
- No smart meter needed. Though it's no problem if you have one.
- It's agreed to MSE enhanced service. Ie, if there's an issue, go to it first, but if it doesn't sort it, contact our Energy Club and we can and will escalate it and try to help.
- £50 per fuel early exit penalties, but they needn't be paid if you move to another BG fix (a key benefit). As with most fixes, early exit penalties are payable if you leave 50+ days before the fix ends. The exemption here to early exit penalties if you switch to another BG fix is useful during a time of huge global uncertainty. It means if prices did fall very substantially more than expected, you would be free to shift to a cheaper BG fix, which is a little bit of peace of mind. You do pay exit fees if you move to its variable tariffs.

There are other cheap standalone fixes out there. They'll all be shown when you do a Cheap Energy Club comparison (including via the British Gas link above). To give you a flavour, here's how they compare on average to today's Price Cap (including any MSE cashback) at typical use...

- New. Outfox the Market 1yr fix - 16.4% less. £25/fuel early exit fees (this mid-sized provider cut its price after the British Gas tariff launched and is now on average cheapest)
- Outfox the Market 18mth fix - 16.1% less. £50/fuel early exit fees
- Outfox the Market 2yr fix - 15.7% less. £75/fuel early exit fees
- E.on Next 1yr fix - 15.1% less. £50/fuel early exit fees
- Elec-only fix: Fuse - 20.4% less. £50 early exit fee
- No exit fee: EDF Simply Fixed Direct Aug 26 - 14.1% less
- Smart prepay: EDF Simply Fixed Direct Aug 26 - 14.1% less

It's worth noting the very cheapest dual-fuel fix is the Ovo 1 Year Fixed+ Boiler Cover, which is 16.6% less than the current Price Cap, but to get that price you must also get its £17/mth boiler cover. This tariff will be included in your comparison too.

Q. What is 'MSE cashback'? Some providers pay energy comparison sites to facilitate the switch (you still get the same price as going direct). Unlike other sites, we don't default to hiding tariffs that don't pay. Instead, we show them all, but when we get paid to switch you, we give you a chunk of this money as cashback. So those that pay us are relatively cheaper for you, and it's likely more people switch to them. Win-win.

Quick tip: In credit on your Direct Debit? If you switch firms, you should be given all the credit back (once final meter readings are done). If you're in debt, you can usually switch, but will need to pay what's owed.

What's expected to happen to energy prices in the future?

The Price Cap will drop in July, but even then it's extremely unlikely to be as cheap as fixing (and its unlikely to get much cheaper after that). On 1 July the next Price Cap comes in, and it will last three months. Its level moves primarily with average wholesale rates from mid-Feb to mid-May. As we're now three-quarters of the way through this period, predictions are firming up. It will undoubtedly get cheaper, and the range is closing in to DOWN 8% to 9%...

Latest predicted July Price Cap change by each set of analysts
EDF -8.2% | British Gas -8.5% | Cornwall Insight -9.0%

The Price Cap isn't predicted to get significantly cheaper over the next year (if correct, a cheap fix now will save you cash & give peace of mind). Admittedly, the further out you go, the more crystal-ball-gazing it is, but fixing now at 15% below the current Cap is far cheaper than staying on the Price Cap for the next year, if the analysts' predictions, based on current market forecasts, are right. (Of course, our uncertain world means many things could happen that kick trend lines in wildly different directions.) And, certainly, factor in the value a fix's certainty gives you and it makes it a very strong option for most.

Now let's look at what'd happen if those predictions are wrong, especially further out (which is possible)...

- If energy prices don't fall as much as predicted. Savings from fixing now would be bigger. So it's not a worry if you lock in a fix.

- If energy prices fall more than predicted. This is possible, for a host of reasons, perhaps due to a peace settlement for Ukraine meaning Russian gas starts flowing to Europe again. Or if US tariffs were to lead to a worldwide downturn meaning continued lower oil demand (there are a lot of ifs).

Yet remember we know you'd save substantially until July, and again are almost certain to save a decent chunk until October. To make fixing not worthwhile compared to sticking on the Price Cap, to overcome what you'd have already saved by then, you'd need much, much bigger, rapid and substantial drops after October than currently predicted.

If that possibility is a concern, remember you are always free to leave a fix. You may just need to pay the exit fee, so focus on keeping them low (it's one reason I included the cheapest no exit-fee deal above). These are now usually c. £50 per fuel for a 1yr fix, so just a few percent of a typical annual bill (though a bigger relative hit for lower users). If prices really dropped a lot though, it'd be a smart move and you'd have saved in the meantime.

There are specialist tariffs worth considering too (lower standing charges, time of use, EV tariffs)...

While fixing is simplest, there are other deals worth considering for some. Though a few are tough to display via the traditional comparison site model, so let us walk you through the main ones...

Lower user? Get £50 off standing charges. The EDF Simply Tracker tariff* tracks the Price Cap for around a year, but with £50/yr lower standing charges (£25/fuel).

So for those who have very low usage (under roughly £80/mth), where the standing charges make up a larger portion of the bill, this can beat fixing. It doesn't require a smart meter, unless you're on prepay, and the early exit penalties are £25 per fuel.
Octopus rapid-change time-of-use tariffs. These are best for sophisticated users with smart meters, who get how energy markets work. With the Octopus Tracker tariff, rates change daily based on wholesale costs. It's been 30% cheaper than the Price Cap on average over the last year - though the key is it is variable, so there's uncertainty to what you pay.

Rates of the elec-only Octopus Agile tariff change half-hourly, based on wholesale prices, so much so it can be free, or even pay you, to use energy in the middle of the night, but very costly at peak times. It's good for those who can nimbly shift their usage to take advantage of super-cheap times, or who have battery storage.

These Octopus tariffs are only available for existing customers, though to get 'em, you could first try switching to the Octopus Price Cap tariff then, once in, switch to one of these.
Got an EV? Consider a dedicated tariff. Several suppliers offer specific tariffs which let you get cheaper electricity overnight for charging your electric vehicle (EV). Full details on what's available are in our EV tariffs guide, but in brief, there are two types:

a) 'Add-on' tariffs, where you can only charge your car on the cheaper rate. Ovo and Scottish Power offer these, so you can add EV charging to whichever of their tariffs you're currently on, and you'll get a cheap rate to charge your EV at any time. All other electrical use in your home will be charged at your existing tariff rates. So if you can get a decent fix from these firms (Ovo has one 12% less than the current Price Cap - do a comparison), the fact you can charge your EV for less is a boon.

b) Two-rate tariffs giving you cheaper elec overnight. Most EV tariffs offer five to seven off-peak hours a day (eg, from midnight to 5am) and charge around 7p to 10p per kilowatt hour of electricity used. Then the rest of the time you usually pay the Price Cap unit rates. The benefit here is if you've other appliances that you can use overnight, they'll cost less too.

Thanks,
The MSE Cheap Energy Club Team

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