Martin Lewis' energy switching money-saving tip as some fixed tariffs are below the price cap

Martin Lewis has said people should consider immediately switching to a fixed energy tariff to save money - with potentially bad news about wholesale prices about to land. The personal finance expert on his BBC podcast said that potentially prices might not drop by as much as had been hoped due to issues such as the crisis in the Middle East.

He said that by switching to a number of fixed deals which are below the current energy price cap, people could save money. He highlighted the best deal possible currently from EDF - and his Money Saving Expert site has also suggested alternatives from British Gas, E.on, Octopus, Sainsbury's and Outfox the Market.

Mr Lewis explained: "The vast majority of people in England, Scotland and Wales are on a price cap tariff. If you don't know what tariff you're on you're almost certainly on a price cap tariff. The last prediction we have for what's going to happen to the price cap, and this comes from Cornwall Insight, I have been lobbying to try to make Ofgem actually to do its own predictions."

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Mr Lewis said the most recent prediction done about a month ago was that rates are likely to go down 8 per cent in July, up 5 per cent October and up 0.2 per cent in January. Mr Lewis said that if someone stays on the price cap and the predictions are correct then people will roughly pay 3 per cent on average than they do now.

However Mr Lewis said he'd asked for another prediction from Cornwall Insight and the bad news is that wholesale rates have risen slightly because of the Middle East turmoil - making the predictions too generous and that people may not save as much as that.

Mr Lewis said: "At the same time we started to see some cheaper fixes coming into the market, so if you think about what I'm saying - staying on the price cap will be roughly 3 per cent cheaper than now if we're lucky. But it may be less than that."

"So if you can fix at anything where the discount is more than 3 per cent cheaper than the current rates then you'll both getting the peace of mind that you can lock in at the cheaper rate and you might actually if those predictions come true, actually save money over the next year at the same time."

He explained that historically the fixes were around the rate for predicted changes to the price cap - but added: "Now it looks like they're actually cheaper thank the prediction to the price cap."

What fixed deals are there?

EDF

Mr Lewis said the cheapest fixed deal right now is the EDF Essentials one year May 2025 fix which he said was likely to change soon. You can get it if you're new to EDF - 7 per cent less on average than the current price cap.

EDF Energy Essentials 1yr May 25 v1 12-month fix for new and existing customers - 7% less than price cap - with - £50 dual-fuel exit fees

You'll need to have or get smart meters (including smart prepayment meters) and must pay by fixed monthly Direct Debit (or by smart prepay). Available as dual-fuel or electricity-only.

Outfox the Market

Outfox the Market Super Fix'd Dual Apr24 MSM v2.012-month fix for new and existing customers - 6% less than the price cap with £50 dual-fuel exit fees

Available as dual-fuel only and you must manage your account online. Smart meters are not required.

British Gas

British Gas Fixed Lighter 12m v2 / Fixed Tariff 12M v3 12-month fix for ew and existing customers - 5% less than the price cap - £100 dual-fuel exit fees (3)u0009Available as dual-fuel, electricity-only or gas-only. Smart meters not required.

British Gas is also offering half price electricity until 8 September on Sundays to some eligible customers. For full info, see our Get paid to cut your energy use guide.

EON

E.on Next Fixed 12m v14 / Gust v5 12-month fix new and existing customers - 5% less than the price cap - £100 dual-fuel exit fees Available as dual-fuel or electricity-only. You must be willing to have smart meters installed.

Octopus Energy

Octopus Energy Loyal Octopus 12M Fixed March 2024 12-month fix 4% less than the price cap - No exit fees Existing customers only You must have been with it for at least eight months to get this tariff. Available as dual-fuel or electricity-only, and smart meters are not required.

Octopus 12M Fixed March 2024 12-month fix New and existing customers - 3% less than the price cap - No exit fees Open to switchers and existing customers. Smart meters are not required.

Sainsbury's Energy

Sainsbury's Energy Sainsbury's Fix and Reward 12 V14 12-month fix New and existing customers - 3% less than the price cap -- £100 dual-fuel exit fees. You'll need to have or get smart meters. Available as dual-fuel or electricity-only.

New customers will get 4,000 Nectar points when signing up (2,000 for electricity-only) and two extra points for each pound spent in Sainsbury's stores (one extra point for electricity-only).

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