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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.
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.”
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.