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.
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.
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%.
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.
These are
deemed/out-of-contract rates—meant to be temporary and often
significantly more expensive over time.
✅ 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.
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.
Get your free quote today
You’ll automatically move onto the Variable Price Plan, where rates are higher than fixed-term tariffs.
Yes, you can switch to another supplier at any time, as VPP rates do not require a termination notice.
By renewing your contract or switching to a new supplier before your fixed price period ends.
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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