Clear and Simple Variable Tariffs from British Gas

British Gas has simplified its tariffs. There are now four instead of 20 or 30 to choose from: their standard, two discounted versions and a fixed price tariff.

The energy industry has come under fire from many quarters not only for increasing rates when wholesale prices are static or reducing but also for confusion in their tariff options. Complaints to Ofgem seem to centre around confusing tariffs and the volume of options available to residential customers.

So British Gas are the first company to introduce easy to follow options for their customers. They still offer the lowest standard tariff (now called clear and simple) in the market place but have other options now. These are basically two types of tariffs – a fixed priced and variable price although additional discounts are available if you manage your account online and/ or pay via monthly direct debit.

British Gas Tariff Options

Clear and Simple Tariff

The Clear and Simple tariff is just that. It’s their entry-level tariff which can be purchased by most people as you don’t need to pay by direct debit (although additional discounts apply). However, it doesn’t come with Energy Smart, their online account management service. With Clear and Simple you get:

• A daily standing charge and a variable unit price
• A discount of £15 per year if you take dual fuels (i.e.: gas and electricity)
• An additional 6% discount if you pay via direct debit
• No cancellation fees so you are free to move tariff at any time

Many thousands of people take this tariff in the UK and it’s one of the most popular. However, there are better deals on the marketplace even from British Gas – see below.

Online Variable Tariff

This tariff is the same as the clear and simple but has an additional 6% discount over the prices because online account management is mandatory. This means you enter your meter readings online so that your bill is always 100% accurate. With energy smart you also receive a free energy monitor to check your electricity usage in real time.

• 6% discount from the Clear and Simple tariff
• Online account management with Energy Smart
• Free energy monitor which could reduce your consumption by 12%
• No exit fees

If you want to stay with British Gas this is the tariff we recommend. If you don’t want online account management then see the next option.

Discount Variable Tariff

This option provides an additional 4% discount over the Clear and Simple tariff, and you don’t need to sign up for the online Energy Smart management scheme.

• 4% discount over the Clear and Simple tariff
• No online account management required
• No exit penalties

How Much Will They Cost?

Generally British Gas targets their pricing to be the cheapest variable (standard) tariff in the market and this has been the same for many years. All power companies are required to show prices on average demand and the figures used from Ofgem are electricity at 3,300 kWh per year and gas at 16,500. The figures quoted include VAT at 5% and payments via direct debit.

Use these figures with caution as really they are there to compare tariffs across all companies. To get an accurate value for your home, you should get a quote using your own consumption data or monthly billing data. The average costs are as follows:

• Clear and Simple standard £99 per month
• Online variable £93 per month
• Discount variable £95 per month
• Fixed tariff £106 per month

These prices are for a dual fuel tariff (i.e.: Taking electric and gas from the same provider).

All of these tariffs are built from a daily standing charge then either a fixed or variable charge per unit of energy used. Most energy companies structure their deals this way for residential customers in the UK.