British Gas is urging households to adopt the '11am to 4pm rule' to reduce energy bills ahead of the new price cap taking effect on July 1, 2026. From July 1 to September 30, 2026, energy prices will increase by 13% for a typical household using electricity and gas and paying by Direct Debit.
Understanding the Price Cap Changes
The price cap rise means that households on standard variable tariffs will face higher costs. However, those who have switched to a fixed rate tariff will not be affected by these changes. Simon Wood, Head of Energy Pricing & Costing at British Gas, which serves Birmingham households, emphasized the importance of immediate action: "How can I reduce my energy bills immediately?"
Tips to Save Energy at Home
Wood offered practical advice: "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." He highlighted that electricity savings can be made by shifting usage to cheaper hours if on a dual-rate tariff.
PeakSave Sundays: Half-Price Electricity
British Gas customers are encouraged to sign up for PeakSave, which offers half-price electricity on Sundays from 11am to 4pm. "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!" Wood said.
For those on a variable tariff with cheaper off-peak electricity, Wood advised checking which hours qualify for the lower rate: "That will be the best time to use energy-hungry appliances like ovens and tumble dryers."
Single-Rate Tariff Customers
If you are on a single-rate tariff, you pay the same for electricity regardless of the time of day. "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," Wood explained.
Additional Time-of-Use Offers
British Gas also provides time-of-use offers to help save money on heat pumps and EV charging. Wood noted: "We also have various time-of-use offers available that can help you save money on heat pumps and EV charging."
Typical Costs Under the New Cap
For customers on a standard variable tariff paying by Direct Debit, the average electricity rate will be 26.11 pence per kilowatt hour (kWh), with a daily standing charge of 57.19 pence. These figures are based on averages across England, Scotland, and Wales and include VAT at 5%.
