What is the Energy Price Cap?
The energy price cap is a regulation designed to limit the amount energy suppliers can charge their customers for gas and electricity. It aims to protect consumers from excessively high energy bills while ensuring that providers can operate sustainably.
In an exciting initiative, British Gas is offering free energy for two hours on Friday, March 28, from 11 AM to 1 PM. This unique opportunity allows customers to consume energy without the worry of rising bills during this timeframe. This event, known as the Green Flex event, marks the second time British Gas has implemented this initiative, aimed at benefiting thousands of customers.
The incentive comes as a result of a surplus of renewable energy available on the grid, generated by recent windy weather conditions. Customers who opt into this offer will enjoy half-price electricity, allowing them to save more as they adjust their energy usage patterns. While there is no requirement to alter daily routines, shifting usage to these off-peak hours can lead to significant savings.
New and existing customers enrolled in the PeakSave scheme will be eligible for this discount, with the savings reflected as credits on their bills. Typically, these credits will appear within two weeks after each event concludes. British Gas has communicated directly with eligible customers to ensure they are aware of this opportunity.
This promotional day comes just three days ahead of an anticipated rise in energy prices scheduled for April 1, providing customers the chance to accumulate credits before their bills increase. In addition to one-off Green Flex events, British Gas offers its customers the opportunity to save every Sunday through the PeakSave scheme, which provides half-price energy from 11 AM to 4 PM, during times of reduced pressure on the National Grid. To date, shifting energy consumption to these off-peak hours has saved British Gas customers over £20 million.
Other Energy Providers Supporting Consumers
British Gas is not alone in its efforts to help customers save by encouraging energy usage outside of peak hours. Here’s how other providers are contributing:
EDF Energy
EDF Energy’s Sunday Saver challenge rewards customers for shifting their energy usage to Sundays. Participants can earn free energy for the following week based on their off-peak usage during the week. For instance, by moving 40% of their energy consumption away from peak hours, customers can receive up to 16 hours of free electricity to use the next Sunday. To participate, customers need a smart meter set to provide half-hourly readings, which can be easily adjusted through the EDF MyAccount portal.
Ovo Energy
Ovo Energy presents an exciting opportunity for customers to win free energy by reducing their consumption during peak times. Their Power Move initiative allows customers to potentially win up to £2,000 of free energy by using 85% or more during off-peak hours. Each month that a customer’s peak usage remains below 15%, they are entered into a prize draw, with five winners receiving £2,000 each, along with many others eligible for smaller prizes. Interested customers can sign up through the Ovo Energy website.
Scottish Power
Scottish Power offers the Power Saver scheme, enabling customers to access half-price electricity every Saturday and Sunday between 11 AM and 4 PM. To benefit from the refunds on their energy costs during these hours, customers must register for the Power Saver program. Additionally, Scottish Power occasionally holds ad-hoc Power Saver events during the week, providing further savings opportunities. A smart meter is required to enroll in this program.
E.ON Next
E.ON Next has introduced a generous offer of free electricity on bank holidays until March 2026. Customers will receive credits to their accounts for each bank holiday they participate in, with the next opportunity being Good Friday on April 18. E.ON Next estimates that households could save around £3.50 for each bank holiday, but customers must already be signed up for the Pledge tariff to take advantage of these free electricity sessions.
Octopus Energy
Customers of Octopus Energy who are enrolled in the “Octoplus” plan can benefit from free electricity sessions whenever wholesale prices dip below zero. These sessions last for one hour, during which customers can use electricity for free and receive credits for any additional usage beyond their typical consumption. Notifications are sent to all customers with smart meters the day before each session, allowing them to maximize their energy usage during these periods.
How Do I Calculate My Energy Bill?
If you’re looking to understand your energy bill better, here’s a simple way to calculate your costs:
- Start by finding your unit rate for gas and electricity, as well as the standing charge for each fuel type. The unit rate is usually displayed on your bill in p/kWh.
- The standing charge is a daily fee applied year-round, regardless of your energy usage.
- Next, note your annual energy usage from a previous bill.
- To calculate your costs, multiply your usage in kWh by the unit rate in p/kWh for each fuel type. This gives you the total usage costs.
- Then, multiply each standing charge by 365 days to find your annual standing charge total.
- Add your total usage costs to the total standing charge to determine your annual costs.
- Finally, divide this annual figure by 12 to estimate your monthly payment starting from April 1.
Do you have a financial issue that requires assistance? Reach out to us by emailing [email protected].
Additionally, consider joining our Sun Money Chats and Tips Facebook group to exchange tips and experiences with others.