Martin Lewis issues 'magic number' to fix British Gas, EON and EDF bills before July
Martin Lewis' team warns that the best fixes will start to vanish as the July 1 price cap drop nears.
Martin Lewis discusses Ofgem's energy price cap reduction
Moving to a fixed energy deal that's higher that's two percent higher than the current price cap could save Brits money on their bills, according to Martin Lewis and the moneysavingexpert.com team.
However Martin Lewis' team warns that the best fixes will start to vanish as the 1st July 7 percent price cap drop nears.
Most households are on a standard tariff dictated by the Energy Price Cap meaning typical household bills currently pays a total £1,690 a year.
This average bill is set to fall to £1,568 a year on 1 July and this drop has led Martin Lewis to issue his rule of thumb that "If you find a fix for up to two percent more than the current (April to June) Price Cap, it's predicted you'll save over the year compared to staying on the Price Cap."
The team at Money Saving Expert does warn that some of their predictions are "crystal-ball gazing".
The Money Saving Experts recommend that the E.on next pledge tariff for new and existing customers is worth considering as it "offers a fixed discount off the Price Cap for 12 months. It'll stay £50 below the Price Cap, so about three percent less (at average annual use) for the fixed term."
The team said: "You'll need to pay by monthly Direct Debit and manage your account online. You must be willing to have a smart meter installed (where possible). Available as dual-fuel or electricity-only.
"If you were on the previous version of this tariff, you will be subject to £25 per fuel exit fees. You can switch penalty-free to this new version, plus your 12-month term restarts from the date you switch."
The Money Saving Experts also recommend Brits look into the fixed tariff offered by British Gas which is five percent less than the price cap with £100 dual-fuel exit fees.
According to the Money Saving team the EDF energy fixed deal for new and existing customers is also "worth considering" as it's rates are the same as the price cap and it has £50 dual-fuel exit fees.
The experts said: " You'll need to have or get smart meters (including smart prepayment meters). You can pay by fixed monthly Direct Debit or on receipt of bills (or by smart prepay). Available as dual-fuel or electricity-only."
Octopus energy also offers a fixed deal that is three percent less than the price cap with absolutely no exit fees and no requirement for smart meters.
The website offers an online calculator that allows Brits to check whether it would be good for their finances to switch to a fixed deal.
