Martin Lewis explains 'three options' to cancel £149 energy bill hike

-Credit: (Image: Reach Publishing Services Limited)
-Credit: (Image: Reach Publishing Services Limited)


Martin Lewis has explained three options to "beat" the energy price cap rise. The BBC Sounds podcast host spoke out in the new Money Saving Expert (MSE) newsletter after it emerged the energy price cap was skyrocketing to £1,717 a year for an average dual-fuel household paying by direct debit.

In the weekly email bulletin, the ITV regular explained 'why energy prices rose 10 per cent even though wholesale rates have dropped' and how to use that to stop the energy price cap rise He urged people to use price comparison websites to find better deals and potentially save over £200 a year.

Mr Lewis outlined three main options for consumers to beat the energy price cap rise. Discussing fixing your energy tariff, he said the cheapest fixed-rate deals are currently slightly cheaper than the previous price cap, allowing consumers to lock in a rate for a year and avoid the 10 per cent rise.

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Alternatively, you can get a discounted price cap tariff. These tracker tariffs promise to follow the price cap but at a lower rate. Some have lower standing charges, making them particularly beneficial for low energy users. Many have no exit fees, allowing penalty-free switching if better deals emerge.

Alternatively, use Octopus rapid price-change tariffs. These innovative tariffs are designed for sophisticated energy users. Rates change rapidly with wholesale prices, offering potentially significant savings but also carrying higher risk. They're currently only available to existing Octopus customers.

He said: "Is it worth waiting a bit in case fixes get cheaper? It's impossible to say, the rate you can fix at moves roughly with wholesale rates, and like all markets they're volatile. Yet what we do know for certain is if you stick on the Cap you'll pay far more than you would on a cheap fix every day from today, so even if you did wait you'd need a very substantially cheaper fix to make up for it.

"The less stressful move is to fix today, though clearly with hindsight there's a chance waiting will win."