British Gas Out of Contract Rates (Effective October 2024)

Thomas McGlynn • 3 March 2025

Are You Paying More Than You Should for British Gas Out of Contract Rates?

If your British Gas business energy contract ends soon, or if you’re already out of contract, you’ll automatically be placed on Out of Contract (OOC) rates—but did you know these can sometimes be higher than British Gas’s published Standard Variable Rates (SVR)?


🚨 A real case study from one of our clients proves this.


In this blog, we’ll explain:


The new British Gas Standard Variable Rates from April 2025
Why some businesses are paying more than expected
How to avoid overpaying for your energy

🔹 British Gas Standard Variable Rates Increasing from April 2025


From 1st April 2025, British Gas will introduce new Standard Variable Rates (SVR) for businesses. Below is a breakdown of how much rates are increasing.

Gas Standard Variable Rates

Meter Type Unit Rates (p/kWh) Standing Charge (p/day) % Increase from Oct 2024
Small Non-Daily Meter 5.43 461.00 ↑ 10.37%
Large Non-Daily Meter 5.15 5,658.00 ↑ 19.80%
Daily Meter 5.38 44,787.00 ↑ 9.96%

Note: These rates exclude VAT and are subject to change based on industry notifications.

📌 Business Electricity Standard Variable Rates (SVR) – April 2025

Non-Half-Hourly Sites and Whole Current Meters

Profile Class Unit Rate (p/kWh) Standing Charge (p/day) % Increase from October 2024
Profile Classes 01-04 25.14 312.00 ↓ 6.02%
Profile Classes 05-08 25.51 531.00 ↓ 22.48%
Unmetered Supply (UMS) 36.72 0.00 ↑ 37.13%

🔹 What This Means for Businesses:


  • Gas rates are rising across the board, with standing charges for large meters increasing by nearly 20%.
  • Electricity costs for unmetered supplies are jumping by 37%, which could significantly impact businesses relying on street lighting, signage, or other UMS supplies.
  • Standing charges have decreased for smaller businesses, but unit rates remain largely unchanged.


🚨 The biggest takeaway? Out of Contract rates are already expensive, and if you're not careful, you could end up paying even more than these rates.

🔹 The Hidden Cost of British Gas Out of Contract Rates – A Real Client Case Study


Many businesses assume they’ll be placed on British Gas’s Standard Variable Tariff (SVT) when their contract expires. But that’s not always the case.


📌 Case Study: A Business Paying More Than Expected


We were recently contacted by a business that had gone out of contract with British Gas. Instead of being charged the ublished Standard Variable Rates, they were placed on a different, more expensive tariff based on an old renewal letter they had ignored.


When we investigated, British Gas confirmed that:


✅ If a customer
receives a renewal offer but doesn’t accept it or switch, the rates in that offer can still be applied—even if they are higher than the Standard Variable Tariff.


Published Standard Variable Rates are NOT always applied automatically.


This client ended up paying significantly more than expected—all because they assumed British Gas would default to the publicly available OOC rates.


🚨 Key takeaway: If you let your contract expire without renewing, you might be locked into higher renewal letter rates instead of the current Standard Variable Tariff.

🔹 Who Are We, and How Can We Help?


We’re The Smart Energy Company, an independent energy broker helping UK businesses avoid costly out-of-contract rates.


  • ⭐⭐⭐⭐⭐ 100% 5-star Trustpilot rating
  • We've helped hundreds of businesses reduce their energy costs
  • No pushy sales – just expert advice


📌 Not sure what rate British Gas will charge you?


We’ll check for you – free of charge.

📌 How to Avoid Overpaying on British Gas Out of Contract Rates


1. Never Let Your Contract Expire Without a New Agreement

  • Out-of-contract pricing is always higher than fixed-term rates.


2. Check Your Renewal Letters Carefully

  • If British Gas has sent you a renewal offer, don’t ignore it!
  • If the rates seem high, switching suppliers could save you money.


3. Compare Fixed-Term Rates with a Trusted Broker

  • Fixed-term rates are always lower than out-of-contract pricing.
  • We help businesses compare rates across 25+ suppliers to find the best deal.



📌 Remember: If you do nothing, you could end up paying even more than British Gas’s Standard Variable Rates—just like our client did.

📞 Take Action Before April 2025 – Secure a Better Rate Now


🚨 April 2025 price increases are coming. Act now to lock in a better deal!

📞 Call: 0151 459 3388


📧
Email: info@smart-energy.uk
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Get a Quote: smart-energy.uk/free-business-energy-quote or click the button below

FAQs About British Gas's Out of Contract Rates

  • How do I know if I’m on out-of-contract rates?

    You’re likely on out-of-contract rates if your energy bill shows higher standing charges and unit rates than your previous contract. You will also notice there will be no contract end date on your bills. Contact us, and we’ll help confirm your status and explore your options.

  • Can I switch suppliers while on out-of-contract rates?

    Yes! Businesses on OOC rates can switch suppliers at any time without penalties. It now only takes 2 - 5 days to switch suppliers too. The Smart Energy Company can guide you through the process quickly and easily.

  • What’s the difference between out-of-contract and deemed rates?

    Out-of-contract rates apply when your contract ends without renewal, while deemed rates apply when a supplier takes over a site without a formal agreement in place. Both are higher than in-contract rates.

Final Thoughts


British Gas out-of-contract rates are increasing from April 2025—but you may be charged even more if your renewal letter includes different pricing.


A real client case study highlights this risk.


Comparing and securing a fixed contract now is the best way to avoid overpaying.


📢 Have questions or need a quote? Contact us today and let’s get your business on a better deal before these changes hit.

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