Martin Lewis has sounded an urgent “fix now” alarm following a jump in energy costs for countless UK homes this week. Ofgem’s price cap has seen an increase from £1,568 annually to £1,717 – marking an approximate 10 percent rise – for the average household paying by direct debit.
This Ofgem price cap extends to around 27 million households. If you are on a standard variable tariff (default tariff), that means you’re also affected by the price cap so it applies unless you’re already on a fixed energy deal, reports the Mirror.
Yet, in his latest weekly email sent through MoneySavingExpert.com, Martin advises consumers that the time is ripe to check prices and ponder over fixing their tariffs. The founder of MSE pointed out that the current best fix offers are marginally less expensive than the previous July price cap level.
He explained: “You can lock in for a year and you won’t face the 10 percent rise. This is the MAIN OPTION for most people right now.”
It’s vital to note that locking into a new fixed deal secures the unit rates you pay for gas and electricity, meaning if your usage goes up, you’ll spend more or conversely, less usage will mean lower bills.
Martin adds clarity with these words: “Exact prices depend on where you live and what you use, so go via our Cheap Energy Club comparison to find your bespoke cheapest (it’ll also have the latest tariffs, in case things have changed by the time you read this).”
MoneySavingExpert (MSE) has identified the cheapest energy tariffs available, highlighting the Outfox the Market Outfox the Price Cap (Oct 24) Fix’d Dual v2.0 as the leading option averaging 9.4 percent cheaper than the October price cap. Close contenders are the EDF Essentials 1yr Oct25v3 and British Gas Fixed Tariff 12M v8, both offering savings of 8.9 percent.
Other notable deals include the Octopus 12M Fixed October 2024 v1 and E. on Next Fixed 12M v28, which are 8.8 percent lower than the cap, followed by the Ovo 1 Year Fix and 1 Year Loyalty Fix at 8.7 percent below.
Martin Lewis commented: “It’s predicted that over the next year you’ll pay roughly 1 percent less than the current price cap… so all the fixes above have a lot of wriggle room for things to change and them still to be cheaper than staying on the cap.”
Additionally, MSE points out an alternative in the form of discounted price cap tracker tariffs that fluctuate with the Ofgem price cap. The EDF Ensure 1yr tracker offers standing charges £50 cheaper than the cap, which according to MSE, is particularly suitable for those who consume less energy.
Meanwhile, the E. on Next Pledge 1yr tracker sports unit rates approximately 3 percent below the price cap for a year.