British Gas is urging UK households to follow an '11am rule' to cut their energy bills 'immediately' ahead of a rise in energy prices from July 1. The advice comes after the ongoing conflict in the Middle East has driven up wholesale gas prices, resulting in higher costs for households over the coming months.
US-Israeli strikes on Iran, followed by retaliatory strikes across the region at the end of February, prompted UK wholesale energy prices to jump by around 50%, meaning higher costs for suppliers to buy energy to supply to customers. While the current Ofgem energy price cap has provided protection for households on variable tariffs from April 1, regardless of developments in the Middle East, the price cap will rise by 13% from July 1.
This jump will equate to a rise of £18 per month for the average household using both electricity and gas, meaning the typical home is now facing an annual energy cost of £1,862 - up £221 on current levels - and early forecasts predict a further increase from October.
British Gas said switching to a fixed-term tariff now can save you money and be a cheaper option as it protects you if energy prices rise, but this 'all depends on how much certainty you want'. But there are other things you can do to reduce your energy bills and start saving money 'immediately' - and this includes following an '11am rule'.
British Gas gives households the opportunity to cut their electricity costs by 50% every single Sunday from 11am through its PeakSave scheme. The cheapest time of day to carry out energy-guzzling tasks, such as using the oven or running the washing machine, will vary depending on what tariff you're on, but the scheme is open to all customers - no matter what tariff you're on - and those who join can enjoy half-price electricity every Sunday for five hours between 11am and 4pm.
During the five-hour PeakSave event, customers can use as much electricity as needed at half the usual price, and you don't need to opt in each week as British Gas will automatically include those who are signed up every Sunday.
In fresh advice issued at the end of May in response to the Iran War, Simon Wood, Head of Energy Pricing & Costing, said: 'How can I reduce my energy bills immediately? 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.'
'For electricity, you can make savings if you're on a dual-rate tariff by shifting as much usage as you can to your cheaper hours. And, 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!'
'If you're on a variable tariff with cheaper off-peak electricity, check which hours qualify for the lower rate on your tariff. That will be the best time to use energy-hungry appliances like ovens and tumble dryers.'
'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. We also have various time-of-use offers available that can help you save money on heat pumps and EV charging.'
To join PeakSave, you must be a British Gas customer and have a smart electricity meter. If you don't have one, you can book a free installation by logging in to your account and checking for an upgrade invitation. If you meet these two criteria, then you simply need to log into your British Gas account and click on the PeakSave tab to join. Once you've signed up, you'll be automatically included in each PeakSave event every Sunday, and during the five-hour events, you can use as much electricity as you need and get it half price.
