Martin Lewis gives best advice after warning of huge energy cap price hike – My London

by MoneySaverExpert

Money Saving Expert Martin Lewis has said that new predictions show the energy price cap hike, which is expected in October will be worse than first predicted. The new estimation is that the cap will rise by 51% meaning that energy companies can charge more for bills.

The prediction shows that people will be paying £2,980/year for energy which is up by £180 on Ofgem’s own projections. Using data from Cornwall Insight, Martin has said that there are some things people can do to potentially lessen the impact of an even larger jump in energy costs.

While remaining cautious with his advice Martin says that one way of lessening the damage of rises would be to aim to get a fixed energy tariff at a rate that is below the new predicted increase. A fixed price tariff means that you pay a set energy rate for a period of time, normally 12 months, meaning your energy rates are not affected by market fluctuations.

READ MORE: Cost of Living: The £332 energy bill saving that every household can do in minutes

As an example, if you are on a fixed tariff where you pay £2,000/year as part of a twelve-month contract and the market cap rises to £2,800/year you will continue to pay £2,000/year despite the rise. However, if the market cap goes down you could risk paying more for energy than those not on a fixed contract.

Martin’s prediction means that any fixed contract that has a price rise that is below 51 per cent will save someone money in the long run. Martin’s advice is: “If you’re offered a year’s fix at no more than 40 per cent above your current price-capped tariff, or 45% more if you very strongly value budgeting certainty, it’s worth considering.”

However Martin also admits: “Fixing below this point is still not a slam dunk, I can’t promise I’ve got this right, there are too many unknowns, just that this is my best-guess with the information I have at the moment.”

Martin and his team have put together a list of fixed contracts that are worth considering, but they are all for existing customers for energy providers, there are no contracts worth while for people looking to switch to fixed contracts.

He says: “Most of the fixes worth considering are for existing customers. Due to rocketing wholesale prices, tariffs have changed rapidly over the last few days, so we don’t know how long the tariffs below will be around for. Scroll down the list and see if your supplier is included.

“There are NO open-market fixed deals worth considering. E.on previously had a fix at 42 per cent more than the current price cap, which just scraped into the equation. That tariff was pulled, so there are now no open-market deals that we think are worth considering based on current predictions – the cheapest is Ovo Energy, but at 57 per cent more than the price cap (we will of course monitor if things change).”

On the MSE website Martin lists the best deals there are available to people who are looking to fix their prices:

  • EDF Energy: Fix Total Service Jun24v6 two-year fix, 42% more (£2,800 a year) £300 dual-fuel (exit fees) – EDF says it’s only available to existing customers on its standard and default tariffs. It also says you can get £130 bill credit (from EDF) if you enter the code ‘SVTJUN22OFFER’ when signing up via the MyAccount section of its website – it told us there’s a ‘Do you have an offer code?’ box once you click the option to ‘Change tariff’ where you can enter the code (we’ve not factored the bill credit into the price of this tariff).

  • EDF Energy: Fix Total Service Jun24v5 two-year fix, 42% more (£2,800 a year) £300 dual-fuel (exit fees) – EDF says it’s only available to existing customers on a fixed deal that ends in June.

  • E.on / E.on Next: Fixed Online v15 / Next Online v15 one-year fix, 42% more (£2,800 a year) (no exit fees) – E.on says it’s available to all existing customers.

Martin also suggests for those who are really struggling to pay their bills to take advantage of government support. He adds: “The Government has announced a new energy bill support package worth at least £400 to almost all households and over £1,000 to some.

“This will apply regardless of whether you are on a price-capped tariff or if you fix. Our What to do if you’re struggling to pay your energy bills guide covers everything you can do and where to get help, and has info on all the new cost of living support schemes.”

Have a story you think we should be covering? Email

You may also like

Leave a Comment