British Gas is urging UK households to follow an '11am rule' to cut their energy bills "immediately". The advice comes as ongoing conflict in the Middle East has been driving up wholesale energy costs, leading to more expensive energy bills for households.
Ofgem's new energy price cap came into effect this month, rising by 4% and adding around £60 more per year to the average bill. The latest price hike means the bill for the average household paying by direct debit for gas and electricity reached £1,723 per year, and experts are predicting the cap will rise by a further 16% to £1,999 on January 1 - up by £276 on the level between October and December.
PeakSave scheme offers half-price electricity
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 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.
Government VAT cut and fixed tariffs
The UK government has temporarily removed the 5% VAT from electricity bills until March 31 next year to help households, with the cut to save homes around £45 a year. Switching to a fixed tariff can also be a good way to save as it protects households if energy prices rise, like they are expected to in January, although British Gas says "it really depends on how much price certainty you'd like".
Analysts Cornwall Insight said its latest predicted increase is driven by the escalating Middle East conflict, which has disrupted gas supplies to the UK and worldwide as the vital Strait of Hormuz shipping route has been effectively closed since the Iran war began in February.
Advice from British Gas expert
In advice issued this month 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, consider signing up for our PeakSave tariff, which gives you cheaper electricity during off-peak periods."
"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. We have various smart time-of-use tariffs available that can help you save money."
