1. Martin’s warning: Energy firms are pushing you to fix… don’t. In fact DO NOTHING.
Over to our founder: “The energy market is in crisis, wholesale prices have exploded. Firms are being forced to sell energy substantially below its cost price, due to the energy price cap on standard variable tariffs. And I’m starting to hear that firms’ marketing departments are therefore kicking into gear to try to persuade people to take up other tariffs.
“Expect to get fancy letters extolling the virtues of fixing – tapping into switchers’ instincts as if these were normal times, when that was the right thing to do. No surprise, they are desperate to get people off the price cap. Yet as a consumer, fixing now is almost certainly NOT the right thing to do (I can’t say 100% without a crystal ball, but it’s my very strong suspicion).
“The cheapest fixes cost 30%+ more than the price cap – a huge premium, when you consider the price cap is in itself fixed until April. If you’re on it you’re essentially locked in at the cheaper price over the high-use winter period. So DO NOTHING, and if you’ve never switched, you’ll be on the price cap. If your fix is coming to an end, or your provider has gone bust, DO NOTHING and you’ll automatically be moved to the price cap.
“If you want to see the price differentiation for yourself, do a Cheap Energy Club comparison.”