British Gas says there are ways to cut energy costs straightaway with bills expected to rise in the coming months
British Gas is encouraging UK households to use an ’11am rule’ in order to “immediately” reduce their energy bills.
This guidance follows recent events in the Middle East that have escalated wholesale energy costs, leading to energy bills being expected to rise in the coming months. US-Israeli strikes on Iran, followed by retaliatory strikes across the region, caused UK wholesale energy prices to surge by approximately 50% meaning it currently costs energy suppliers more to purchase energy for customer supply.
According to information from price comparison website Uswitch gas has increased by 30% to the highest level in more than three years and, as this significantly influences electricity pricing, electricity costs are likely to rise as well. For money-saving tips, sign up to our Money newsletter here.
The Ofgem energy price cap will offer protection for households on variable tariffs until the beginning of July, regardless of developments in the Middle East, but from July 1 British Gas anticipates prices will increase by around 9% with further rises expected in October and January.
Regarding fixed-term tariffs the major energy supplier stated these are likely to be more costly to reflect increases in wholesale prices, reports the Express.
Switching to a fixed tariff now could be a cheaper option as it safeguards households if energy prices increase but British Gas says “it really depends on how much price certainty you’d like”.
However the supplier suggests there are additional measures you can take to reduce your energy bills and start saving money “immediately” and this includes following an “11am rule”.
British Gas offers households the chance to cut their electricity costs by 50% every Sunday from 11am through its PeakSave scheme.
The most economical time of day to perform energy-intensive tasks, such as using the oven or operating the washing machine, will fluctuate depending on your tariff but the scheme is accessible to all customers, regardless of your tariff, and those who participate can enjoy half-price electricity every Sunday between 11am and 4pm.
During the five-hour PeakSave event customers can utilise as much electricity as required at half the standard price and there’s no need to opt into each week as British Gas will automatically include those who are registered every Sunday.
In new advice issued this month in response to the Iran War, Simon Wood, head of energy pricing and costing, said: “How can I reduce my energy bills immediately? There are all sorts of ways to save energy around the home, from turning down your thermostat to choosing shorter cycles on appliances like washing machines and dishwashers.
“For electricity you can make savings if you’re on a dual-rate tariff by shifting as much usage as you can to your cheaper hours. And if you’re with British Gas for your energy definitely sign up for PeakSave so you can make the most of half-price electricity on Sundays from 11am to 4pm.
“If you’re on a variable tariff with cheaper off-peak electricity check which hours qualify for the lower rate on your tariff. That will be the best time to use energy-hungry appliances like ovens and tumble dryers.
“If you’re on a single-rate tariff you’ll pay the same for boiling a kettle at 4am as 4pm so if you’re a British Gas customer, you’ll only be able to take advantage of lower-cost power on PeakSave Sundays between 11am and 4pm. We also have various time-of-use offers available that can help you save money on heat pumps and EV charging.”
