British Gas Out of Contract Rates (Effective April 2025)

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

What You Need to Know if You’re Out of Contract with British Gas


If your fixed energy contract with British Gas has ended, and you haven’t arranged a new deal or switched suppliers, you’ll automatically be moved onto their Standard Variable Rates (SVR). These out-of-contract rates apply to both gas and electricity and are significantly more expensive than most fixed-term contracts on the market.



From 1st April 2025, British Gas will apply new SVR pricing. Here’s what you need to know—and what to do if you're affected.

🔺 A Real Case Study: Why Some Businesses Are Paying More Than Expected


One of our clients recently contacted us after falling out of contract with British Gas. They assumed they’d be charged the SVR published online—but they weren’t.


Instead, they were placed on higher rates from a renewal offer letter they had never accepted.


📌 British Gas confirmed:

  • If you receive a renewal letter and don’t act, those quoted rates may still apply—even if they’re more expensive than the published SVRs.


  • Published rates are not guaranteed unless you actively reject the renewal offer and take action.



👉 The result? This client paid more than necessary, all because they assumed British Gas would default to the cheaper SVR.

🔹 British Gas Gas Out of Contract Rates – April 2025

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%

💡 All rates exclude VAT and Climate Change Levy (CCL)

🔹 British Gas Standard Variable Rates – Electricity (Effective April 2025)


🔸 Non-Half-Hourly (NHH) Sites

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%

🔸 Half-Hourly (HH) Sites – Summary


British Gas HH electricity rates vary by voltage type, region, and TCR banding. Here’s a simplified range:

Type Typical Standing Charge Unit Rates (p/kWh)
HH LV/LVS ~£9 to £40/day 22.5 – 26.5
HH HV ~£10 to £45/day 22.4 – 26.5
HH EHV (Band 1) Up to £790/day (TCR driven) ~3.52

📩 Not sure what applies to your MPAN or meter class? We’ll check for you and provide the exact rate breakdown.

👉 Avoid paying more than you need to

Get your free quote today.

🔍 Why Are Out of Contract Rates So Risky?


British Gas’s SVRs are only meant to be temporary—but many businesses stay on them far too long. Here's why that’s a problem:


Higher costs – OOC rates are often 20–40% more expensive than fixed deals
No stability – Rates can change with just 30 days’ notice
Hidden charges – Excess capacity, reactive power, and network charges can apply



📌 Even if your unit rate looks "reasonable", your standing charge might be hundreds—or even thousands—per year.

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


1. Never Let Your Contract Expire Without a New Deal
Out-of-contract pricing is always higher than fixed-term rates.


2. Check Your Renewal Letters Carefully
Rates from renewal letters can still apply if you don’t act—even if you never signed anything.


3. Compare Fixed-Term Prices with a Trusted Broker
We compare
28+ suppliers to find the best rate and take care of the switch for you.


📩 Contact us if you’re unsure what you’re currently being charged.

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.

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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