GoCompare comments on the news that British Gas is to scrap its standard variable rate tariff (SVR) by April for new customers
Ben Wilson from GoCompare Energy, comments: “This is a welcome move for British Gas’s five million customers who, like two thirds of all UK households, are paying much too much for their gas and electricity, thanks to being on innocuously named ‘standard variable rate’ (SVR) tariffs.
But it doesn’t come into effect until April – once the peak energy usage season is over – and it’s important that customers realise that this move will not signal the end of bad deals – in effect, British Gas has just replaced its SVR with an SBR or ‘Slightly Better Rate’.
“SVR tariffs act as holding pens where the energy companies keep their most profitable customers, so it’ll be interesting to see what happens to cheaper fixed deals if these cash-generating tariffs disappear altogether.
“It’s been reported that British Gas’s new SBR will save its SVR customers up to £75 a year. The message is clear – don’t settle for a ‘Slightly Better Rate’ when you can switch and save hundreds of pounds a year with a more competitive supplier.
“If you haven’t switched energy in a while – or ever – take ten minutes out of your day to shop around online and compare tariffs prices and features from multiple suppliers. If you find a better deal, switching is a doddle – enter some details, click a few buttons, and your new supplier will handle the rest.”
For more information on understanding your energy bills or switching your energy supplier, see GoCompare's dedicated guide page.
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