British Gas Out of Contract Rates (Effective October 2025)

When your British Gas fixed contract ends, you don't just continue on the same rates. Instead, you're automatically rolled onto their Variable Price Plan (VPP) – and it's costing businesses across the UK thousands in unnecessary energy costs every year.
The average business on British Gas's out-of-contract rates is paying 35-45% more than they need to. For a typical SME, that's £3,000-£5,000 wasted annually – money that could be reinvested in growth, staff, or savings.
The good news? You're not locked in. You can switch suppliers at any time with no exit fees, and we'll show you exactly how much you could save.
When your British Gas fixed contract ends, you're automatically moved to their Variable Price Plan (VPP). These are the rates you're paying right now if you haven't switched:
(0-73,199 kWh)
The True Cost of Being Out of Contract
Most businesses save significantly when switching from British Gas's Variable Price Plan to competitive fixed contracts.
Paying premium rates with no contract benefits or price protection
Average savings when switching from British Gas VPP to competitive fixed contracts
💰 What Does This Mean in Real Money?
Typical annual savings for businesses switching from British Gas out-of-contract rates:
Actual savings depend on your consumption, location, meter type, and current market rates. Get your personalized quote to see your exact savings.
Why Being Out of Contract is Costing You Thousands
When your British Gas fixed-term contract ends, you don't just continue paying the same rates. Instead, you're automatically rolled onto their Variable Price Plan (VPP), which is significantly more expensive.
British Gas's out-of-contract rates are designed to be flexible for them, not affordable for you. While you're free to leave at any time without exit fees, every day you wait is money down the drain.
⚠️ The Hidden Cost: For a typical business, staying on British Gas's out-of-contract rates for just 6 months costs an extra £2,000-£4,000 compared to a competitive fixed contract. That's money that could be reinvested in your business growth, staff, or savings.
Why British Gas charges more for out-of-contract customers:
- No commitment means no incentive- Without a contract locking you in, they have no reason to offer competitive rates
- Customer inertia- They bank on businesses not switching immediately, so they can charge premium rates
- Rates can change with 30 days' notice- Your VPP rates aren't fixed and can increase at any time
- You're subsidizing their customer acquisition- Out-of-contract customers pay higher rates that help fund deals for new contract customers
The good news? You're not locked in. You can switch suppliers any time, often within 2 - 5 working days, and start saving immediately. There are no exit fees when you're on the Variable Price Plan, so there's nothing stopping you from securing a better deal today.
Most businesses that switch from British Gas VPP save between 35-45% on their energy costs. The switching process is completely free, your supply won't be interrupted, and we handle all the paperwork for you.
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British Gas vs Alternative Suppliers
Here's how British Gas's out-of-contract rates compare to what's available on the market. Remember, actual rates vary by location, meter type, and consumption.
Tariff Type | Typical Rate Range | Contract Terms | Potential Savings |
---|---|---|---|
British Gas Variable Price Plan (Out of Contract) | Premium rates, no price protection | No fixed term, rates change with 30 days notice | - |
Fixed Rate Contracts (1-3 years) | Competitive market rates | Price locked for contract duration | 35-45% average savings |
Green Energy Contracts | Competitive renewable rates | 1-3 year fixed terms | 30-40% average savings + sustainability |
Savings are based on typical business consumption patterns compared to British Gas VPP rates effective October 2025. Your actual savings will depend on your specific usage, location, and the contracts available when you switch.
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Compare My Options NowFrequently Asked Questions
Check your latest bill for the tariff name. If it says "Variable Price Plan" (VPP) or doesn't mention a fixed contract end date, you're out of contract. You can also log into your British Gas account online or call them directly. If your contract ended and you didn't actively choose a new one, you're automatically on their VPP.
If you have a half-hourly (HH) meter, you're likely a larger energy user, and British Gas's out-of-contract rates are even more expensive for you. HH meters record your usage every 30 minutes, and British Gas charges premium rates of 25.14-25.51p/kWh for electricity, plus high standing charges (312-531p/day) and capacity charges. The savings potential for HH meter customers switching away from British Gas VPP is often greater - typically £10,000-£50,000+ annually depending on consumption. We specialise in securing competitive rates for HH customers.
Absolutely! Being out of contract means you're free to switch at any time with no exit fees or penalties. In fact, this is the perfect time to switch because you're not locked in. The switching process typically takes 2-5 days, and your energy supply won't be interrupted.
Most businesses save between 35-45% when switching from British Gas's out-of-contract rates to a competitive fixed contract. For a typical SME, this translates to £3,000-£5,000 per year. Larger businesses with higher consumption can save significantly more. The exact savings depend on your usage, location, and the contract terms available when you switch.
No, your energy supply is never interrupted when switching suppliers. The switch happens behind the scenes through the National Grid system. You'll continue receiving electricity and gas without any disruption. The only changes you'll notice are lower bills and correspondence from your new supplier instead of British Gas.
No! When you switch through us, we handle all communication with British Gas on your behalf. We notify them of your switch, arrange the final meter readings, and ensure your account is closed properly. You don't need to contact British Gas at all. We make the entire process completely hassle-free.
British Gas must refund any credit balance on your account within 14 days of your switch completing. This is a regulatory requirement. Make sure to provide them with your bank details for a direct refund. If you paid by Direct Debit, they'll typically refund to the same account automatically.
The standard switching period is 2-5 days from when you sign your new contract. During this time, all the administrative work happens in the background. Once complete, you'll receive a final bill from British Gas and your first bill from your new supplier.
You never receive an invoice from us - our service is entirely free for you to use. We're paid a commission by energy suppliers, which is included in your contract rates and fully declared in your paperwork. Here's why using us makes sense: we have access to wholesale base rates that suppliers don't offer when you contact them directly. This means we can often secure better deals than you'd get going to suppliers yourself, even with our commission included. Plus, we save you the time and hassle of contacting dozens of suppliers individually.
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