British Gas Out of Contract Rates (Effective October 2025)

Thomas McGlynn • 7 October 2025
British gas out of contract rates - april 2025 update what you 'll pay if your contract expires without a new deal

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.

BRITISH GAS VARIABLE PRICE PLAN RATES - UPDATED 7TH OCTOBER 2025

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:

Electricity Unit Rate
30.24 p/kWh
Electricity Standing Charge
194.26 p/day
Gas Unit Rate
(0-73,199 kWh)
5.45 p/kWh
Gas Standing Charge
180.41 p/day
⚠️ Important: These VPP rates are effective from 1st October 2025 and can be changed by British Gas with just 30 days' notice. If your gas consumption is higher (73,200-732,000 kWh/year), you're paying even more: 6.14p/kWh unit rate and 787.23p/day standing charge.
📊 Half-Hourly Meters: If you have a half-hourly (HH) meter, you'll be on British Gas's Standard Variable rates instead of VPP. While unit rates may be slightly lower (22.66-26.53p/kWh depending on region), standing charges are drastically higher - ranging from £4.27 to £10.50+ per day, plus additional capacity charges. With TNUoS increases coming in April 2026, these standing charges will rise even further, making switching critical for HH customers.
📄 Want to See the Full HH Rate Schedule? British Gas's half-hourly rates vary significantly by region, TCR band, voltage level, and meter configuration. The full rate schedule includes detailed breakdowns for Low Voltage, High Voltage, and Extra High Voltage connections across all UK DNO regions.

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.

❌ Staying on British Gas VPP
Out of Contract Rates
£££

Paying premium rates with no contract benefits or price protection

✅ Switching to Fixed Contract
Competitive Market Rates
Save 35-45%

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:

Small Office/Shop
£1,500-£3,000
per year saved
Medium Business
£4,000-£8,000
per year saved
Large Business
£10,000+
per year saved

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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Frequently Asked Questions

How do I know if I'm on British Gas's out-of-contract rates?

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.

What if I have a half-hourly meter?

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.

Can I switch from British Gas if I'm out of contract?

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.

How much can I realistically save by switching from British Gas?

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.

Will my supply be interrupted when I switch suppliers?

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.

Do I need to contact British Gas to cancel?

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.

What if British Gas owes me credit when I switch?

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.

How long does it take to switch from British Gas?

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.

Is there any cost to use Smart Energy Company's switching service?

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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