British Gas releases 'commodity price tariff'

Between 1 July 2019 and 31 December 2019, at least 10% of people who switched energy supplier for both gas & electricity with Uswitch saved £479 or more.

British Gas has announced that it has launched a new energy tariff that will track commodity prices.

The new product will follow changes to wholesale gas and electricity markets - in a similar manner to which tracker mortgages are linked to the Bank of England base rate.

Every quarter, customers bills' will be reviewed to make sure that they are in line with the wholesale price, meaning that costs more accurately reflect the market.

British Gas says that this will give its customers a clearer view of the way the market falls and rises, rather than tying customers into a system where consumers are protected from the market's potential volatility.

"This new product is for those people who understand and accept the risk that their bills could move up or down far more frequently - but they are guaranteed that their bills are reviewed every quarter," said Phil Bentley, British Gas managing director.

"As the mortgage market has successfully done - we now have a product to match the risk portfolio for all customers - from those who want long term security with fixed prices to those who want cheap internet deals and now those who want to be closer to the true market costs with our tracker."

The tracker will commence from September 1st 2007, with prices fixed at the beginning of each quarter and then reviewed at the end of each quarter.

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