British Gas cheap heat pump tariff - is there a catch?

British gas announce a cheap heat pump electricity tariff at 14p/kWh. What are the pros and cons?
By Justin at Checkmark |
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There’s quite a lot of ’noise’ in the industry news about British Gas introducing a heat pump electricity tariff at just 14p/kWh. At Checkmark we were quite excited - with a 4:1 efficiency on a heat pump that would bring the effective cost down to 3.5p/kWh! That’s quite a saving compared with a regular electricity cost of around 28p/kWh.

So, will there be a stampede? Here’s some things to consider:

  • You have to buy the heat pump from British Gas.

  • The deal is for one year.

  • You have to have your gas meter capped (closed off).

Further details are on the Centrica Opens in a new window (British Gas parent company) website.

Our initial excitement became rather more muted when we found that you have to have British Gas install a heat pump to get the deal. According to Centrica, the estimated electricity saving is up to £450, so with the other caveats, this incentive isn’t as attractive as a say a £500 product or installation discount.

Still, if you are in the market for a fully installed heat pump solution, it should be in the mix along with other offerings from other suppliers. If you already have a heat-pump, Octopus Energy Opens in a new window are doing some promoted tariffs that are worth a look.