British Gas and E.On customers could get cheaper energy deals, says Martin Lewis

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Money Saving Expert's Martin Lewis during a joint press conference with Facebook at the Facebook headquarters in London. (Photo by Kirsty O'Connor/PA Images via Getty Images)
Martin Lewis has urged British Gas and E.On customers to check if they can get a fixed-rate energy deals. (Getty)

British Gas and E.On customers have been urged to check if they can get a fixed-rate deal to save money on their bills as energy prices soar.

Ofgem announced the energy price cap is expected to increase by a further £830 to £2,800 in October, following an increase to £1,971 in April.

On Tuesday, consumer champion Martin Lewis said on his Money Show Live on ITV that British Gas and E.On customers could land a cheaper deal from their current provider if they get a fixed rate.

He said energy prices were predicted to rocket by 42% in October, so they should consider locking in at 30% over the current price cap, or they could take 35% if they needed a price assurance.

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The MoneySavingExpert founder mentioned the two companies specifically as offering existing customers fixed rates that were below 30% of the price cap.

Lewis said: “I believe there is an E.On two-year fix that people are being offered and British Gas one-year fix that people are being offered that are within less than 30% [of the price cap].

“If you’re being offered those, you may want to look into it.”

Lewis said the 42% predicted in October would only last three months and analysts estimated the January 2023 price cap for the next three months was going to be the same.

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He said he was expecting the energy price cap to be around £2,800 until next April and “then it is going to drop a little bit".

Lewis said the cheaper fixed rates were not advertised in the open market and were only being offered to existing customers.

He added: “When you plug all that in to where we are now - four months on this price cap, then six months on the next price cap - effectively, if you can find a fix below around 30% of the current price cap, then it’s probably worth doing.”

Read more: Cost of living crisis: What help will Rishi Sunak announce and when?

Electric bill charges paper form on the table
Ofgem announced the energy price cap was expected to increase by a further £830 to £2,800 in October. (Getty)

Ofgem chief executive Jonathan Brearley told MPs on Tuesday the regulator is expecting the energy price cap to increase to £2,800.

He said this is due to the market coping with “once-in-a-generation” price changes “not seen since the oil crisis of the 1970s”.

Chancellor Rishi Sunak is expected to unveil a multibillion-pound plan this week to help people cope with the increase.

Reports have suggested he plans a new windfall tax on oil and gas firms to help fund support for those who are struggling – an option previously suggested by Labour and some senior Tories.

There has also been speculation the tax could extend to electricity generators.

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