British Gas Lite Out of Contract Rates – New Prices from April 2025

Thomas McGlynn • 1 April 2025
British gas lite out of contract rates - april 2025 update what you 'll pay if your contract expires without a new deal

New Business Energy Rates from BG Lite – Are You Paying More Than You Should?


If your fixed price energy deal with British Gas Lite ends and you haven’t secured a new agreement, your account will automatically move onto their Variable Price Plan (VPP). While this ensures continued supply, these rates are often far more expensive than fixed-term contracts.



From 1st April 2025, BG Lite will introduce new VPP prices across electricity and gas. In this blog, we’ll outline the updated charges, compare them to previous rates, and explain why it's crucial to act before your contract ends.

📌 British Gas Lite Electricity Rates – Variable Price Plan (VPP)


🔄 Comparison: Old vs. New Electricity Rates (Profile Classes 01–04)

Period Standing Charge (p/day) Unit Rate (p/kWh)
01 April 2024 - 31 March 2025 217.07 34.90
From 01 April 2025 208.26 31.32

Standing charges have decreased slightly, while the unit rate has dropped by 10.25%, offering modest relief. However, these rates remain higher than many fixed-term contracts available on the market.

📌 British Gas Lite Gas Rates – Variable Price Plan (VPP)


🔄 Comparison: Old vs. New Gas Rates by Consumption Band

Annual Consumption (kWh) Period Standing Charge (p/day) Unit Rate (p/kWh)
0 - 73,199 Apr 2024 - Mar 2025 162.45 8.13
From 1 April 2025 189.30 6.33
73,200 - 732,000 Apr 2024 - Mar 2025 770.39 8.13
From 1 April 2025 784.08 7.05

Good news: Unit rates are coming down for both bands (↓22% and ↓13% respectively).
  ⚠️
But: Standing charges are increasing—especially for smaller users, where daily charges have risen by over 16%.

🔎 What Is the BG Lite Variable Price Plan (VPP)?


British Gas Lite’s VPP is the default tariff applied to non-domestic customers once their fixed-term contract ends and no new agreement is arranged.


  • It applies from the day after your contract ends
  • British Gas Lite can change prices with 30 days' notice
  • All charges exclude VAT and CCL



These are deemed/out-of-contract rates—meant to be temporary and often significantly more expensive over time.

📉 Why Should You Avoid Out of Contract Rates Like VPP?


Higher Energy Bills – Even with small reductions this year, VPP rates are still higher than fixed-term prices available through brokers.


No Price Security – BG Lite can change rates with just 30 days' notice.


Hidden Cost Risk – Standing charges can quietly cost you hundreds more per year.

📌 How to Avoid Being Rolled onto British Gas Lite’s VPP


1️⃣ Don’t Wait Until Your Contract Ends
Act before the end date to avoid rolling onto costly VPP rates.


2️⃣ Compare Fixed-Term Offers Across the Market
Fixed contracts offer price certainty and often
lower p/kWh rates.



3️⃣ Get Help from a Trusted Energy Broker
At The Smart Energy Company, we compare
25+ suppliers and guide you through switching or renewing your energy plan with zero hassle.

👉 Avoid paying more than you need to

Get your free quote today

FAQs About BG Lite's Variable Price Plan

  • What happens if I don’t renew my BG Lite contract?

    You’ll automatically move onto the Variable Price Plan, where rates are higher than fixed-term tariffs.

  • Can I switch suppliers while on BG Lite’s VPP?

    Yes, you can switch to another supplier at any time, as VPP rates do not require a termination notice.

  • How can I avoid BG Lite’s Variable Price Plan rates?

    By renewing your contract or switching to a new supplier before your fixed price period ends.

Take Action Today — Avoid High Out of Contract Costs



Don’t let high out-of-contract rates impact your business’s bottom line.


Speak to The Smart Energy Company today for expert advice, a no-obligation quote, or a full review of your current energy contract with British Gas Lite.


📞 Call us: 0151 459 3358
📧 
Email: info@smart-energy.uk

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