Martin Lewis has given his urgent advice to beat the coming rise in energy bills with a simple switch that most households can make. The money expert says the energy price cap is likely to rise even more than previously expected, so bill payers should act soon to make much-needed savings.
As many as 80 per cent of UK households are already overpaying for energy, Mr Lewis adds, because they are paying at the price cap when they could be paying lower.
Writing in his weekly email, he said: “I’m afraid it’s about to get worse. The Price Cap moves every three months and the April to June Cap’s now predicted by British Gas, E.On & EDF to rise 5 per cent to 7 per cent.
“And as the change mainly depends on average wholesale rates from 18 Nov to 17 Feb, the predictions are now pretty firm. Without intervention, it’s virtually unthinkable that the Cap won’t rise – the only question is by exactly how much.”
He also calls out customers of British Gas, EDF, E.on Next, Octopus, Ovo and Scottish Power, telling them to consider looking at cheaper deals than these firms’ standard offerings. This can be done by making the switch to a fixed tariff energy deal, he explains, which guarantees the rate at which energy is paid for a set period.
Deals from firms like Ecotricity and Outfox the Market come in at between 4.6 and 6.8 per cent less than the current price cap. These are the only two still on the market which save roughly five per cent or more.
Any fixed-term deal will generally be offered for at least 12 months, and up to 24 months. While they will fix this lower price in place for now, they also remain the same if the energy price cap falls below the rate they offer. Most will charge an exit fee to get out of.
The Money Saving Expert service gives its rule of thumb: “If you find a fix for up to 4 per cent more than the current (Jan to Mar) Price Cap, it’s predicted you’ll save over the year compared with staying on the Price Cap.”
Energy bills tend to rise or fall every three months, when Ofgem sets its energy price cap. This dictates the maximum amount energy suppliers can charge for each unit of energy, and is expressed as the annual bill for the average household.
The cap rose to £1,738 in January, up 1.2 per cent from £1,717. This followed from a ten per cent increase in October.
Forecast of how much the figure will rise again in April vary, but most key analysts agree it will be increasing. Large energy firms like British Gas, E.On and EDF predict it will increase by between five and seven per cent.
A six per cent increase would see the cap rise to £1,842, taking it up £152 from the same time last year and to the highest it has been since January 2024.
For more energy bill and cost of living help, visit The Independent’s regularly updated guide.
