British Gas has released an update for customers amid concerns over the Iran war and its impact on UK energy prices. In a YouTube video titled 'Iran war and UK energy prices – current impact and what it means for energy bills,' the company's head of pricing, Simon, addressed key questions from bill payers.
Simon confirmed that current prices will remain unchanged until the end of June, but warned that prices may rise from July 1 due to global events in the Middle East affecting wholesale energy markets. He explained that wholesale prices make up roughly half of a typical bill, so market spikes can influence what customers pay.
Addressing fears of a gas shortage, Simon assured customers that the UK is not at risk of running out of gas. He cited diverse supply sources including North Sea production, renewables, and liquefied natural gas imports, as well as the Rough storage facility, which provides 50% of the UK's gas storage. Long-term international supply agreements also secure gas for years to come.
On long-term price stability, Simon highlighted the role of renewables and nuclear power in reducing reliance on volatile global markets. British Gas is investing in existing nuclear stations and new projects like Sizewell C. When asked about fixed versus tracker tariffs, Simon noted that fixing can offer savings if prices rise, while trackers may be cheaper if prices fall, depending on the customer's preference for certainty.
For immediate bill reduction, Simon advised simple measures such as shorter appliance cycles and turning off electronics at the mains. He also promoted British Gas's PeakSave scheme for half-price electricity on Sundays and larger investments like smart heating controls, energy-efficient appliances, or solar panels.
