Martin Lewis issues verdict to 26 million households about changing to a fixed energy tariff

Martin has recommended consumers to lock onto a fix now
-Credit:ITV


Martin Lewis discussed energy prices on his Martin Lewis Money show, broadcast on January 14. The money saving expert shared week-by-week insights into energy bills and what changes will mean to consumers.

Eight in ten households in England, Scotland and Wales are expected to see energy bills rise by 6% from April. Martin has recommended consumers lock onto a price fix now, he says you can typically save 7% straight away and protect yourself from future hikes for 16 months. The newest hike comes after fuel prices increased in October and January.

The energy price cap covers 26 million households in England, Wales and Scotland and is set every three months by the energy regulator Ofgem. It fixes the maximum price that can be charged for each unit of energy on a standard or default tariff for a typical use household paying by direct debit.

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With the price increases approaching, Martin Lewis says: "the easiest and safest route" is for households to fix to a cheaper fixed energy tariff. In his latest MSE newsletter, he stated: "Most homes are on an Energy Price Capped tariff. The Cap went UP 10% on 1 Oct, UP another 1% on 1 Jan and it's now predicted to go UP 3% to 6% on 1 Apr. Yet act NOW & you save now, and can prevent future hikes.

"The price cap isn't a total cap on what you pay, it's a limit on the daily charge & unit cost of energy, so use more, pay more. Most firms charge at the limit, and these limits are high now, meaning the Price Cap is a pants cap, as most can easily compare & switch to a cheaper deal."

A "price cap" is a maximum limit set by a government or regulatory body on the price that can be charged for a particular good or service. It only applies to providers' standard and default tariffs, so if you're on a fixed-term energy deal, the cap doesn't apply.

Martin added: "Move to a cheap fix and within five working days you'll be paying less than the Price Cap. Plus, the rate is locked in so you get peace of mind that it won't change."