British Gas Customers Without Smart Meters Urged to Act for £246 Annual Savings
British Gas customers have been strongly encouraged to take immediate action to secure substantial financial benefits, with potential annual savings reaching £246. The prominent consumer finance website Money Saving Expert, founded by the renowned BBC and ITV personality Martin Lewis, has highlighted these significant savings in its latest Big Energy Switch email bulletin.
Exclusive Market-Beating Tariffs Available
The weekly MSE communication detailed that both British Gas and the smaller energy provider Fuse are currently offering two fixed-rate tariffs that undercut the cheapest options available on the open market. These special deals allow customers to lock in rates that are up to 16 per cent below the current Ofgem Price Cap, translating to potential savings of approximately £300 per year for the average household.
Martin Lewis explicitly stated in the email: "Our British Gas deal massively undercuts its cheapest direct deal, & existing customers can get it too, even if you're fixed with it." He emphasised that this represents the second Collective Switch initiative facilitated since the energy crisis, describing it as a regulated process where energy firms competitively bid to provide special offers that are cheaper than their standard public tariffs.
Key Details and Eligibility Requirements
The British Gas first-year fixed tariff is available to both new and existing customers, but availability is strictly limited to 20,000 switches on a first-come, first-served basis. A crucial advantage for many consumers is that no smart meter installation is required to access this deal. Early exit penalties for leaving the tariff prematurely are set at £50 per fuel.
These savings calculations are based on the current Ofgem energy price cap, which is set at £1,758 per year for a typical dual-fuel household paying by direct debit from 1 January to 31 March 2026. A 14 per cent reduction from this cap equates to the £246 annual saving figure that has been widely promoted.
Strategic Timing and Market Context
Lewis highlighted the particularly advantageous timing of this offer. He noted that the government is preparing to reduce some underlying structural costs from energy bills in April, a move being framed as providing "£150 off bills." This policy shift is predicted to cause the Price Cap to drop, and, unprecedentedly, should also lead to rate reductions for most customers on existing fixed tariffs.
MSE analysis confirms that, at the time of writing, this British Gas Collective Switch offer is cheaper for typical usage than all other open-market fixed deals. It averages 14.1% less than the current January to March Price Cap, a rare achievement for a major energy supplier. Lewis concluded with a stark warning for consumers on standard variable tariffs: "if you're on your firm's standard tariff, you're on the Price Cap and it's pants," urging millions who may be overpaying to consider switching to a more competitive fixed rate.
