If you're choosing between Octopus Energy and British Gas in January 2026, you're comparing the UK's largest and most established suppliers. Both have their strengths, but which one will actually save you more money? I switched from British Gas to Octopus Energy last year, and here's everything you need to know before making your decision.
The Quick Answer
For most households, Octopus Energy is cheaper in January 2026. Octopus has never charged the full price cap and typically comes in around £15 cheaper than the £1,758 cap. British Gas charges the full price cap on their standard variable tariff. When you add the £50 referral credit for new Octopus customers, the savings become even more compelling.
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Click Here to Get £50 →Price Comparison: Octopus Energy vs British Gas
The January 2026 energy price cap is £1,758 per year for a typical dual fuel household paying by Direct Debit. Here's how both suppliers compare:
| Tariff | Octopus Energy | British Gas | Winner |
|---|---|---|---|
| Standard Variable | ~£1,743/year | £1,758/year (full cap) | Octopus -£15 |
| 12 Month Fixed | ~£1,670/year | ~£1,685/year | Octopus -£15 |
| Referral Credit | £50 when you switch | No referral bonus | Octopus +£50 |
| First Year Total | ~£1,620/year | ~£1,758/year | Octopus -£138 |
Customer Service Comparison
British Gas is the UK's oldest energy supplier with a long-established reputation. However, customer service quality has varied significantly over the years. Octopus Energy, founded in 2016, has built its brand around outstanding customer service.
Octopus Energy:
- Trustpilot rating: 4.8 out of 5 (700,000+ reviews)
- Which? Recommended 5 years running
- Average phone wait time: under 1 minute
- UK-based customer service team
British Gas:
- Trustpilot rating: 1.4 out of 5 (150,000+ reviews)
- Longer wait times during peak periods
- Mix of UK and overseas call centres
- More established infrastructure
The difference in customer satisfaction is stark. While British Gas has the advantage of being a household name with decades of experience, Octopus Energy has genuinely revolutionised customer service standards in the energy industry.
Real Experience: Why I Switched from British Gas
I was with British Gas for years because it felt safe and familiar. When I finally switched to Octopus Energy in late 2024, my January 2026 bill was £315 compared to £465 in January 2025 with British Gas. That's £150 saved in a single month, even accounting for usage patterns being similar.
Which Energy Suppliers Offer The Best Prices?
Looking beyond just these two suppliers, the most affordable energy companies in January 2026 are typically those who don't charge the full price cap. Octopus Energy consistently ranks as one of the cheapest large suppliers. Other competitive options include OVO Energy and E.ON Next, but Octopus remains the only major supplier to have never charged the maximum price cap since it was introduced.
For households looking for fixed-rate deals with predictable pricing, Octopus Energy's 12 month fixed tariff currently offers rates around 5% below the price cap with no exit fees, giving you flexibility if a better deal emerges.
Where Can I Find Energy Referral Discounts?
Energy referral schemes can significantly reduce your switching costs. Octopus Energy offers one of the UK's best referral programmes, giving both the new customer and the person who referred them £50 credit. British Gas does not currently offer a referral scheme for domestic customers.
To claim your £50 Octopus Energy credit, you must click a referral link before signing up. The credit cannot be added retrospectively, and you cannot type the code manually on their website. Use this link to ensure the £50 credit is automatically applied to your account once your switch completes.
Special Tariffs and Smart Features
Octopus Energy advantages:
- Agile Octopus: Half-hourly pricing that follows wholesale rates
- Intelligent Octopus Go: Cheap overnight charging for EV owners
- Cosy Octopus: Designed for heat pump owners
- Excellent app with detailed energy usage tracking
British Gas advantages:
- Boiler and home care packages
- PeakSave: Rewards for reducing usage at peak times
- Longer market presence and brand recognition
- HomeEnergy: Their new tariff aims to be competitive
If you drive an electric car or have a heat pump, Octopus Energy's smart tariffs offer significantly better value than British Gas alternatives.
Switching Process
Both suppliers make switching straightforward. The process typically takes 2 to 3 weeks, and your energy supply continues uninterrupted. However, there are some differences:
With Octopus Energy, the entire switching process is handled online or via their app. They contact your old supplier, arrange the switch date, and keep you informed throughout. With British Gas, you can also switch online, though some customers report longer processing times.
For a detailed guide on switching to Octopus Energy, read our complete switching guide.
The Verdict
For January 2026, Octopus Energy is the better choice for most households. You'll pay less on both standard and fixed tariffs, receive a £50 referral credit when you switch, and benefit from significantly better customer service. British Gas remains a solid, established option if you value brand familiarity or need their home care packages, but purely on price and service quality, Octopus Energy wins.
The £138 first-year saving (£15 cheaper tariff + £50 credit + ongoing lower rates) makes this an easy decision for most people. If you're on the fence, remember that Octopus has no exit fees, so you can switch again if a better deal emerges.
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