Guides - Is Octopus Energy Cheaper Than British Gas? Octopus vs British Gas Compared

Prices and product information checked: 09 September 2026.

Octopus Energy is not automatically cheaper than British Gas. Which supplier costs less depends on the tariff available in your postcode, how much gas and electricity you use, standing charges, payment method, meter type and, on smart tariffs, when you use electricity.

For conventional household tariffs, the only reliable comparison is a like-for-like quote using your actual annual consumption. Octopus becomes particularly interesting for smart-meter households, EV owners, batteries and flexible electricity use, while British Gas can still be competitive through its fixed, EV, and smart-energy products.

There is also an important 2026 complication: Ofgem changed the consumption benchmark used to describe a “typical” bill from July. That means apparently conflicting annual figures can both be correct.

Octopus vs British Gas: Quick Verdict

Bottom line: if you’re asking “British Gas or Octopus?”, compare price first using the same consumption assumptions. Then consider whether smart tariffs, EV charging, solar, customer service or contract structure change the value of the deal.

Why Are the July 2026 Price-Cap Figures £1,663 and £1,862?

This is one of the most important details in the comparison.

For 1 July to 30 September 2026, Ofgem’s average Direct Debit price-cap rates are:

• Electricity: 26.11p/kWh + 57.19p/day standing charge
• Gas: 7.33p/kWh + 29.04p/day standing charge

Ofgem initially describes the July cap as £1,862 using the previous typical-consumption benchmark. But from 1 July, it also introduced lower typical domestic consumption values because household consumption has fallen. Using the updated benchmark of 2,500 kWh electricity and 9,500 kWh gas, the representative annual figure becomes about £1,663.

This matters when comparing supplier advertising. A supplier annual-cost figure calculated using the old 2,700kWh electricity and 11,500kWh gas benchmark cannot be directly compared with the newer £1,663 figure.

Compare the actual unit rates and standing charges using the same kWh consumption.

That avoids one of the biggest sources of misleading comparisons in the current energy market.

Is Octopus Energy Cheaper Than British Gas Right Now?

There is no credible supplier-wide answer without choosing a postcode, tariff and consumption profile.

Octopus says its standard variable tariff, Flexible Octopus, remains below the Ofgem price cap and that its standing charges are below the capped level. It also offers fixed, Tracker and smart tariffs.

British Gas currently says its fixed tariffs are below the July price cap and offers options including conventional fixed plans, Fix & Fall, standard variable pricing and smart/time-of-use products.

Therefore, a statement such as “Octopus is £X cheaper than British Gas” is only defensible when the comparison publishes:

• postcode or region
• annual electricity kWh
• annual gas kWh
• payment method
• meter type
• exact tariff names
• unit rates
• standing charges
• exit fees
• quote date

The calculation is straightforward:

Annual cost = (annual kWh × unit rate) + (365 × daily standing charge)

Calculate gas and electricity separately, then combine them.

What Does the 2026 Ofgem Benchmark Look Like for Different Households?

Rather than inventing supplier prices, we can use Ofgem’s new consumption bands to show how energy use changes the economics.

Calculated using Ofgem’s national-average July–September 2026 direct debit rates. These are reference figures, not Octopus or British Gas quotes, and regional prices vary. Ofgem’s new 2026 consumption bands are 1,600/2,500/3,800 kWh for standard electricity and 6,000/9,500/14,000kWh for gas.

For a low-use household, standing charges represent a larger proportion of the bill, so tariff structure can matter nearly as much as unit price.

For a medium household, compare the combined annual dual-fuel cost. Even a relatively small difference in pence per kWh accumulates across thousands of units.

For a high-use household, unit rates become increasingly important. If much of that additional electricity comes from an EV, heat pump or battery, a conventional tariff comparison can become the wrong comparison entirely.

A New 2026 Factor: Lower Standing Charge Tariffs

This is one of the most useful developments to watch if you are a low-energy user.

Ofgem launched a one-year lower-standing-charge pilot from June 2026 involving eligible customers of Octopus, British Gas, EDF and E.ON. Ofgem says dual-fuel participants could pay roughly £150 less per year in standing charges than under the capped structure but suppliers are expected to recover more through higher unit rates.

On 18 August 2026, Ofgem granted British Gas a specific regulatory derogation supporting its Fixed Lighter pilot tariffs.

Why does this matter?

At the July national-average capped rates, electricity and gas standing charges together amount to approximately £315 a year before you use any energy.

A £150 reduction would therefore remove almost half of that reference standing-charge burden. But it does not automatically mean a £150 cheaper bill because the unit rate rises.

A useful way to think about the break-even point is this: if the £150 were recovered evenly through usage, which real tariffs do not necessarily do, it would represent roughly

• 1.97p/kWh across Ofgem’s low-use electricity + gas benchmark
• 1.25p/kWh across the medium benchmark
• 0.84p/kWh across the high benchmark

That demonstrates why lower-standing-charge tariffs are potentially more attractive to low users and increasingly risky for high users.

The correct question is not “Which tariff has the lowest standing charge?” It is “Does the lower standing charge still produce a lower annual bill at my consumption?”

Octopus vs British Gas for Smart Energy

Octopus has one of the broadest smart-tariff ranges among UK suppliers. Agile Octopus changes electricity prices every half hour, while Tracker follows wholesale prices daily. These tariffs can reward households able to shift demand, but they also expose customers to greater price variation and require the right meter setup.

British Gas should not, however, be described simply as a conventional supplier anymore. Its current smart range includes EV tariffs, PeakSave, heat-pump and battery-oriented products alongside its standard and fixed tariffs.

Verdict: Octopus remains the stronger starting point for someone actively looking for dynamic and highly flexible tariff design. British Gas now has enough specialist products that households with EVs, batteries or solar should still compare them rather than assuming Octopus automatically wins.

Octopus vs British Gas for EV Charging

At first glance, Octopus appears cheaper.

Intelligent Octopus Go currently advertises smart charging from 8p/kWh and guarantees six hours of cheap whole-home electricity between 11:30pm and 5:30am.

British Gas advertises its EV tariff at 9p/kWh from midnight to 5am, with the discounted electricity also available to other household appliances during the off-peak period.

Charging a theoretical 60kWh at the headline rates would cost about £4.80 at 8p versus £5.40 at 9p, before charging losses.

But that simple comparison misses two important details.

Octopus can extend cheap whole-home periods

When Intelligent Octopus Go schedules eligible smart charging outside the normal 11:30pm–5:30am period, Octopus’s terms say electricity used by the home during those managed charging periods can also receive the off-peak rate, subject to the tariff’s charging rules.

British Gas Power+ can change the effective EV rate

British Gas says customers with compatible charging equipment can combine Power+ with its electricity tariff for a 25% EV-charging discount. Its current EV page says that when paired with its EV tariff this can produce an equivalent 6.75p/kWh home-charging cost for qualifying users; the supplier’s calculation is based on its EV Power May27 tariff and stated assumptions.

So Octopus does not universally have the cheapest effective EV charging rate.

EV verdict: Intelligent Octopus Go has the lower straightforward headline rate and longer guaranteed cheap window. British Gas becomes particularly interesting if you have compatible Power+ equipment. Compare your charger, vehicle compatibility, daytime rate, and actual charging schedule, not simply 8p versus 9p.

British Gas vs Octopus for Solar and Batteries

Solar households should compare net grid cost:

electricity imported – value of electricity exported

Then consider what the battery can move between cheap and expensive periods.

Outgoing Octopus currently pays 12p/kWh on its standard flat export tariff, while Octopus also offers dynamic export products for households with storage and suitable equipment.

British Gas currently pays up to 12p/kWh through its Smart Export Guarantee. Its 12p Export Premium rate is for qualifying British Gas electricity customers with systems up to 15kW; other eligibility categories receive different rates.

That means the headline export rate alone does not produce a winner.

A household importing 3,000kWh and exporting 2,000kWh needs to compare the cost of those imports, value of those exports, battery charging opportunities and tariff compatibility together.

Verdict: Octopus has the more extensive dynamic import/export ecosystem. British Gas can still produce a competitive solar proposition where the customer qualifies for its stronger export rate and its import/battery offer fits the property.

Octopus vs British Gas Customer Service

Price and service should be evaluated separately.

Citizens Advice’s January–March 2026 supplier ratings give Octopus 3.67/5 and 4th place, compared with 2.61/5 and 13th place for British Gas.

But the underlying figures reveal something more interesting:

Octopus’s higher overall score therefore does not mean British Gas is slower to respond. In the same dataset, British Gas actually performs better on headline telephone and email response times; its weaker overall rating reflects other areas, including complaints and billing/metering performance.

Service verdict: Octopus has the stronger overall independent performance. British Gas’s current response-time data is better than its overall score might lead readers to expect.

Octopus vs British Gas for Business Energy

Domestic conclusions should not be carried across to a business contract.

Ofgem confirms that business and other non-domestic energy contracts are not protected by the domestic price cap. Commercial energy is normally quote-led and should be compared using the same premises, meter, consumption, consumption profile, contract start date and contract duration.

Don’t compare business energy using only the unit rate

A commercial bill can also involve:

• standing charges
• VAT
• Climate Change Levy
• network and non-commodity costs
• contract duration
• out-of-contract/deemed rates
• termination provisions
• broker or intermediary charges

From 1 April 2026, HMRC’s main Climate Change Levy rate is £0.00801/kWh (0.801p/kWh) for both electricity and natural gas, where the levy applies. Some businesses qualify for exemptions or reduced rates.

At 100,000 kWh of applicable annual consumption, 0.801 p/kWh represents £801 before considering any exemption or Climate Change Agreement reduction.

That is why comparing two commercial offers from their energy unit rates alone can produce the wrong result.

When British Gas Business may make sense

British Gas offers fixed and flexible commercial products. Flex Advantage combines fixed non-commodity charges with flexible commodity purchasing, but it is designed for organisations consuming more than 1GWh of energy annually. Non-commodity charges can be fixed for up to three years, while energy volumes can be purchased in blocks.

For a restaurant, supermarket or other operation with fairly rigid daytime demand, price certainty from an appropriate fixed structure may be more valuable than trying to chase half-hourly market prices.

That does not mean British Gas is automatically cheaper. Compare its actual quote against Octopus on the same contract assumptions.

When Octopus Business may make sense

Octopus Shape Shifters takes a more explicit time-of-use approach.

Trio has three predetermined daily price bands and provides 21 hours outside its 4pm–7pm peak period.

Agile changes prices every half hour in line with wholesale energy conditions, with prices published in advance. Octopus currently caps Agile Shape Shifters unit rates at £1/kWh. The product requires a working smart meter, Direct Debit and an account in good standing.

That structure is more relevant to a:

• warehouse
• EV fleet
• workshop
• battery-equipped premises
• flexible manufacturing operation
• business with substantial overnight consumption

If the company can move a meaningful portion of load away from expensive periods, the consumption profile becomes a source of potential savings.

Business verdict: for inflexible demand, compare fixed commercial contracts first. For genuinely flexible loads, model time-of-use products using half-hourly data. In both cases, consumption profile matters more than supplier brand.

Should I Switch From British Gas to Octopus?

Do not switch purely because Octopus has a stronger reputation for smart tariffs or customer service.

Use this process:

1. Find your actual annual electricity and gas usage in kWh.
2. Check your British Gas tariff, contract end date and exit fees.
3. Obtain an Octopus quote for the same postcode and payment method.
4. Compare unit rates and standing charges.
5. Calculate the annual cost using your own consumption.
6. Check whether your smart meter and equipment qualify for specialist tariffs.
7. If you have an EV, model the amount of electricity you can realistically use off peak.
8. If you have solar or batteries, calculate import and export together.
9. Only then compare service quality and additional features.

A £20 annual saving is unlikely to dominate every other consideration. A £200–£300 difference deserves much closer attention.

British Gas or Octopus? Final Verdict

So, is Octopus Energy cheaper than British Gas?

Sometimes but not automatically.

For a conventional household, compare the latest Octopus and British Gas tariffs using the same postcode, annual kWh, payment method and meter type. Both suppliers currently market products below the July price-cap reference, and personalised tariff pricing prevents a credible universal winner.

If you want dynamic tariffs, advanced load shifting, batteries or a broader smart-energy ecosystem, Octopus deserves particularly close consideration.

For EV charging, Octopus Intelligent Go has the stronger straightforward headline proposition, but qualifying British Gas Power+ customers may achieve a lower effective charging rate.

For customer service, Octopus has the higher current Citizens Advice overall score, while British Gas performs surprisingly well on direct response times.

For business energy, ignore the domestic comparison and obtain like-for-like commercial quotes. Flexible electricity demand can make Octopus’s time-of-use tariffs more relevant, while British Gas’s fixed and flexible commercial structures suit different consumption profiles.

The most accurate answer to British Gas vs Octopus Energy is therefore not a brand-level winner:

Choose the tariff that produces the lowest suitable total annual cost for the way you actually use energy.

FAQs

Is Octopus Energy cheaper than British Gas?

Not in every case. The answer depends on the tariff, postcode, payment method, annual gas and electricity consumption and standing charges. Octopus can become particularly competitive for flexible-use, EV, battery and smart-tariff households.

Is British Gas cheaper than Octopus?

It can be. British Gas currently offers fixed and specialist tariffs that may beat an Octopus option for a particular household. You need a like-for-like annual-cost comparison rather than comparing supplier names.

Which is better: British Gas or Octopus?

Octopus currently has the stronger overall Citizens Advice customer-service rating and a wider specialist smart-tariff ecosystem. British Gas may still be better where its tariff costs less or one of its EV, fixed or smart-energy products better matches the household.

Is Octopus cheaper for electricity?

Not universally. Intelligent Octopus Go currently advertises EV smart charging from 8p/kWh, but conventional electricity prices depend on postcode and tariff. British Gas also offers specialist electricity products and Power+ can change the effective EV charging comparison for eligible customers.

Is Octopus cheaper for gas?

There is no permanent winner. Compare gas unit rates, gas standing charges, and your annual gas consumption. Electricity smart-tariff advantages do not automatically make the same supplier cheapest for gas.

Should I switch from British Gas to Octopus?

Switch when the overall Octopus proposition annual cost, tariff terms, smart-energy compatibility, and service better fit your household. Check any existing exit fees before moving.

Is Octopus or British Gas cheaper for business?

Neither supplier is universally cheaper for businesses because commercial pricing is quote-led. Compare the same annual consumption, half-hourly profile where available, contract dates, non-energy charges and contractual terms.

Does the Ofgem price cap apply to business energy?

No. Ofgem confirms that business energy contracts are not protected by the domestic energy price cap. Commercial customers therefore need to compare their actual contractual rates and terms.