Money Saving Expert has issued important advice to customers who have been hit by huge energy price hikes.
The money-saving brand, headed by Money Saving Expert Martin Lewis, has sent an email to followers to advise on a new way to beat the October energy price increase. However, it also warned things could get worse for everybody because the ‘UK energy market is broken’.
It says now may be the time to act and switch your energy tariff to a fixed rate because the latest predictions show prices will rise as much as 46% in October to an eye-watering £2,880 based on somebody’s typical use. It says many of the major energy companies are now offering fixed rate tariffs for existing customers that could help to beat the price rise by a small amount, as long as the fixed rate is less than a 46% rise in your current bills.
While none of the tariffs offering by energy companies are cheaper than the current price cap introduced in April there are some that may increase bills now but still keep them below the October price cap, giving customers some relief in the winter months.
The newsletter says: “This week though, it may be time for action, though it’s nowt to whoop about. It’s happened because the latest analysis is the future looks even WORSE, with the price cap likely to rise even more than we previously thought. This means some costly fixes look like they may now be winners.”
For the first time there is an option for those who are not an existing customer. Ovo is offering a fixed price tariff that is just below the threshold based on October predictions but Money Saving Expert warns it is still a hefty increase on current rates. Ovo is offering prices 32% higher than the current prices, which could just about be cheaper if the 46% increase in October arrives.
Elsewhere, existing customers for major suppliers could secure better rates. Here is what to do based on your current energy supplier:
EDF are offering two-year fixes but that may not be useful as prices could drop in April 2023, leaving you paying more. There is also a £300 early exit fee so you could be stuck in the fixed price tariff for the full duration.
Money Saving Expert says the fix being offered is 24% more the current prices, meaning it is well below the predicted October rise. You can see the details and request a switch by logging in to your EDF account here.
E.on has a one year fixed account with no early exit fee. Predications expect it to be 30% cheaper than the October price rise. You can switch here.
British Gas offers a one-year fixed rate if your current tariff is ending. Otherwise it comes with a £150 dual fuel fee. It is around 32% higher than current prices, but below the predicted 46% rise in October. You can switch here.