British Gas has introduced a fixed-rate energy package called the Price Promise tariff, which it says will outperform the Ofgem price cap until at least July1. The tariff is priced at £1,699 per annum for the average dual fuel household, against a current Ofgem price cap of £1,928 per year, a difference of £2291.
The announcement was reported by the Institution of Gas Engineers and Managers (IGEM) in February 20241. IGEM describes the deal as a fixed-rate tariff that guarantees to outperform the cap until at least July1. The comparison figure of £1,928 is the current cap at the time of the announcement, not a forecast of the cap from April1.
Catherine O'Kelly of British Gas said:
"We are always looking for ways to help our customers save and we want to make sure they feel the benefits of lower energy costs as soon as possible and can take advantage of them while using more energy in the winter period."
The £229 saving is stated as the gap between the tariff price and the cap at the time of launch1. It is not stated whether the guarantee covers the whole of the fixed term beyond July, nor how the tariff is priced against the cap if the cap falls below £1,6991. The length of the fix, its exit fees and whether it carries any standing charge difference from the cap have not been reported1.
| Item | Figure |
|---|---|
| Price Promise tariff, average dual fuel household | £1,699 per year1 |
| Ofgem price cap at time of announcement | £1,928 per year1 |
| Stated saving | £2291 |
| Guarantee period | Until at least July1 |
Why it matters for households
The price cap sets the maximum a supplier can charge for each unit of gas and electricity, and for standing charges, for a household on a standard variable tariff. A fixed tariff replaces that variable rate with a set price for a defined period, so the household bill depends on how much energy is used rather than on cap changes.
A tariff priced below the cap gives a household a known unit rate for the length of the fix, which is the part of energy independence that a household can control directly: the rate it pays, rather than the wholesale market that sets it. The trade-off is that a fix locks in a rate even if the cap falls below it later, and leaving early can trigger an exit fee. The sources do not state the exit fee or term for this tariff1.
The £229 figure compares the tariff with the cap as it stood at launch1. It does not show what a household would pay across a full year if the cap moves in April or July, because the cap level for those periods is not given in the source1.
What happens next
The guarantee runs until at least July1. No date has been reported for when the tariff closes to new customers, and no figure has been reported for the cap from April1.