British Gas Heat Pump Tariff: Options, Rates and Full Review

British Gas customers with heat pumps are paying up to £380 more per year than they need to. As the UK's largest energy supplier, British Gas serves around 7 million households — but their lack of a dedicated heat pump tariff means heat pump owners are effectively subsidising their own bills by staying put.

In this review, we look at what British Gas currently provides for heat pump households, how their rates compare, and whether you should stick with them or switch to a more specialised supplier for your air source heat pump.

What British Gas Offers Heat Pump Owners

Unlike Octopus Energy, British Gas does not currently offer a dedicated, bespoke heat pump tariff with special rates. Instead, they provide their general tariff range plus some smart-meter-enabled features.

At 24.5p/kWh, a heat pump using 4,000 kWh per year costs £980 in electricity — which may be comparable to or higher than a gas boiler depending on gas prices. PeakSave adds modest credits for demand flexibility but is not a substitute for a proper heat pump tariff.

How British Gas Compares for Heat Pump Owners

Over five years, that is £1,400-1,900 in unnecessary costs. The savings from switching supplier are simply too significant to ignore if you have a heat pump.

Why British Gas Lags Behind on Heat Pump Tariffs

• Legacy gas business: British Gas's business model revolves around gas boiler servicing and gas supply. Heat pumps represent a disruptive shift away from their core revenue
• Scale challenges: With 7 million customers, rolling out innovative tariffs is more complex than for a smaller, tech-first supplier like Octopus
• Installation focus: British Gas has invested heavily in heat pump installation through partnerships with manufacturers, focusing on that side rather than tariff innovation
• Regulatory constraints: Larger suppliers face more scrutiny around pricing structures

That said, British Gas is evolving. Market pressure from competitors like Octopus is driving change, and it is likely that a more competitive heat pump tariff offering will emerge in late 2026 or 2027.

Should You Stay with British Gas?

For most heat pump owners, the financial case for switching is overwhelming. Check whether your heat pump warranty or HomeCare contract is genuinely tied to your energy account (it usually is not), and then explore the alternatives.

How to Switch Away from British Gas

1. Compare tariffs using our best heat pump tariff guide
2. Choose your new supplier (we recommend Octopus Cosy for most heat pump owners)
3. Sign up with the new supplier — they handle the switch from British Gas
4. The switch takes 2-3 weeks. Your supply is not interrupted
5. Check for exit fees if you are on a British Gas fixed-price contract (standard variable has no exit fees)

Your smart meter will continue to work with most suppliers. SMETS2 meters are fully interoperable.

British Gas Heat Pump Installation vs Tariff

It is worth noting that British Gas is a significant heat pump installer in the UK. Through their partnership with manufacturers, they offer full heat pump installation packages including site survey, MCS-certified installation, BUS grant application (£7,500), and ongoing servicing.

You can absolutely use British Gas for installation and then switch to a different energy supplier for your electricity tariff. The two are completely separate decisions. An MCS-certified installation is valid regardless of who supplies your electricity.

Frequently Asked Questions

Does British Gas have a heat pump electricity tariff?

As of early 2026, British Gas does not offer a dedicated heat pump electricity tariff with special rates for heat pump owners. They offer their standard variable and fixed-price tariffs, plus PeakSave demand flexibility credits. This is less competitive than dedicated heat pump tariffs from suppliers like Octopus Energy.

Can I get cheaper electricity for my heat pump with British Gas?

The best British Gas can currently offer is a competitive fixed-price deal (if one is available) and PeakSave credits. For genuinely cheap heat pump electricity, you would need to switch to a supplier offering time-of-use or dedicated heat pump rates.

Will switching away from British Gas affect my heat pump warranty?

Your heat pump manufacturer warranty is independent of your energy supplier. Switching electricity providers does not affect it. If you have a British Gas HomeCare maintenance contract, check the terms — it should continue regardless of your electricity supplier, but verify to be safe.

Is British Gas likely to launch a heat pump tariff soon?

British Gas has indicated interest in developing heat pump-specific products, and market pressure from competitors is driving innovation. It is likely that they will improve their heat pump tariff offering in 2026-2027, but nothing has been confirmed at the time of writing.

Should I use British Gas to install my heat pump even if I switch supplier?

Potentially, yes. British Gas is a reputable MCS-certified installer with access to quality manufacturers. Get quotes from multiple installers and choose based on price, quality, and service. Your electricity supplier is a completely separate decision. See our heat pump cost guide for more on installation pricing.

What standing charge does British Gas charge?

British Gas's electricity standing charge is set at the Ofgem price cap level, approximately 53p per day as of Q1 2026. This is comparable to other suppliers — standing charges are largely uniform across the market due to the price cap mechanism.