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Is British Gas’s step to abolish SVT beneficial for you? Find out here!

December 1, 2017
Is British Gas’s step to abolish SVT beneficial for you - Find out here

The energy market faced a sudden halt when the Big Six energy supplier British Gas announced the removal of its Standard Variable Tariffs. With such an announcement, energy customers might have started dreaming of cheaper energy bills but this may not work out the same way it seems. UK energy experts suggest that it is the other way round as the announcement may not give the cheapest energy bills to the customers of British Gas. They may benefit a bit but certainly not much. Want to know why? Find out here.

Firstly, British Gas would be striking off its Standard Variable Tariffs from April 2018 meaning that the expensive SVTs would be out of picture only after the winter period. Therefore, you still have to pay heavy energy bills in winter and your idea of cheap winter energy bills has conveniently gone. However, you can still switch to cheaper energy supplier to save yourself from whopping bills.

Another catch in this situation is that the ‘Big Six’ gas and electricity supplier has declared to shift its SVT customers to default deals without giving any clarity about the new default deal. It clearly hints that you will not know how much you will save on energy bills when you are shifted to default deals. It may not be a huge price difference when compared to switching to cheaper energy supplier. Therefore, it is advisable to consider all options before sticking to the giant energy supplier.

The Big Six gas and electricity provider has also mentioned that although, it has prodded its entire SVT customer base to switch to cheap energy deals, only 10% of them have responded. This means a huge portion of the British Gas customers would still be paying heavy energy bills, which is totally opposite to the picture portrayed by the giant gas and electricity supplier.

In addition, the SVTs would not exist from April 2018 and most of the fixed energy deals will be ending by then. This makes it clear that most customers would be losing out on the fixed deals and those on SVTs would not be able to switch to fixed energy deals. They would have a small benefit as far as money is concerned but it won’t make it a big difference and thus, kicking off SVTs may not be in the best interest of the energy customer.

Considering all these factors, one can clearly gauge that British Gas customers would not get the cheapest energy bills even when they are not on the company’s SVT. To combat this situation, energy experts suggest that an energy switch is the best alternative. Customers aiming at cheap energy bills should switch to cheaper energy suppliers as it would help them save much more than switching to fixed energy deals from British Gas.

To conclude, UK households should keep a habit of comparing energy prices and they should switch gas and electricity providers on a frequent basis. If shopping around is not your kind of thing then you can depend on price comparison services of FreePriceCompare. We compare all UK energy suppliers to suggest the cheapest energy suppliers to our customers. If you want to leverage the best discount deals by energy suppliers then give us a shout at https://freepricecompare.com/home-energy/ or call our team of energy experts on 02034757476.

Compare and see how much you can save on your energy bills