Why Understanding Variable Price Plans is Essential for Your Business
If your fixed price product with British Gas Lite has come to an end and you haven’t chosen a new contract, you’ll automatically be moved to their Variable Price Plan (VPP). These VPP rates can be higher than a fixed-term contract, making it crucial for businesses to understand what they entail and how they might affect your energy costs.
From 1st April 2024, British Gas Lite’s VPP rates have remained unchanged, but that doesn’t mean they’re the best option for your business. Below, we break down these rates and explain why taking action now could save your business from unexpected energy costs.
British Gas Lite Electricity Variable Price Plan Rates
VPP rates for Non Half-Hourly Electricity:
Period | Profile Class | Standing Charge (p/day) | Unit Rate (p/kWh) |
From 1st April 2024 | 01-04 | 217.07 | 34.90 |
These rates apply if your business has settled onto a variable plan due to an expired fixed-term contract. While the standing charge has increased, the unit rate from 1st April 2024 has seen a reduction compared to previous periods.
Gas Variable Price Plan Rates
VPP rates for Gas:
Period | Consumption Band (kWh) | Standing Charge (p/day) | Unit Rate (p/kWh) |
From 1st April 2024 | 0 - 73,199 | 162.45 | 8.13 |
73,200 - 732,000 | 770.39 | 8.13 |
From 1st April 2024, gas rates for British Gas Lite remain unchanged. The standing charge and unit rate are key considerations for businesses on a variable plan, especially as higher consumption bands come with a significant increase in daily charges.
What Are Variable Price Plans and Why Should You Act?
Variable Price Plans (VPP) are designed to offer flexibility but often come with higher charges than fixed-term contracts. They allow British Gas Lite to adjust your rates based on wholesale market changes, which can mean sudden increases in your energy costs.
Unlike fixed-term agreements, a VPP doesn’t provide long-term price stability, making it risky for businesses that rely on budgeting certainty. If your business has been moved onto a VPP, it’s critical to consider your options:
Understanding Standing Charges: Daily standing charges can add up, especially with high rates like 217.07 p/day for electricity.
Unit Rates and Consumption: Lower unit rates may seem appealing, but high standing charges can quickly offset potential savings, especially for lower consumption businesses.
Switching or Renewing Can Save: Locking in a new fixed-term contract could save you money and provide peace of mind against market fluctuations.
Avoid Higher Costs: Get a Better Deal with Smart Energy Company
At Smart Energy Company, we understand that navigating out-of-contract rates can be confusing. If you’re unsure about whether to stay with British Gas Lite or switch to another supplier, we can help. Our experts compare rates from over 20 suppliers, ensuring you get a tailored quote that fits your business needs.
What We Offer:
Tailored Quotes: We provide customised options that could offer lower rates than VPP, giving your business the stability it needs.
Market Insights: Our regular market reports help you make informed decisions, avoiding surprises when it comes to your energy costs.
Hassle-Free Transition: We handle everything from comparing rates to managing the switch, so you can focus on your business.
Final Thoughts: Is the British Gas Lite Variable Price Plan Right for Your Business?
While British Gas Lite’s VPP rates may offer flexibility, they can often result in higher bills if market prices rise. Understanding the difference between a variable plan and a fixed-term contract is essential for managing your business’s energy costs effectively.
If you’re looking for stability and potential savings, let Smart Energy Company help you explore your options. With our expert advice and comprehensive market analysis, you can secure the best energy rates for your business.
0151 459 3388 | info@smart-energy.uk
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