Martin Lewis issues two-word verdict on energy price cap rise and urges Brits to act now
Money Saving Expert founder Martin Lewis warned energy customers to act "now" to avoid "ripping yourself off".
Martin Lewis is urging households to “get off the energy price cap” as those remaining on variable rate tariffs could be losing hundreds of pounds a year.
Some fixed energy tariffs are offering rates up to £200 a year cheaper than Ofgem’s new price cap, which increased as much as 10 percent on October 1.
The new cap sees the average household energy bill rise by £149 a year, with the cap increasing from £1,568 to £1,717 annually for a typical duel-fuel household in England, Scotland, and Wales.
However, Mr Lewis warned Britons are “ripping themselves off” by sticking with variable tariffs that track the cap, as much more cost-effective deals are available.
Taking to social media platforms today, the money guru wrote: “We should probably call it a ‘pants cap’ at the moment.
“If you’re staying on the energy price cap now, you are ripping yourself off.”
He added: “Get off the Price Cap! Now's the time to compare energy.”
Mr Lewis further clarified: “If you have fixed your energy tariff you are NOT on the price cap. So the suggestion to ditch the price cap doesn't apply to you. You've already ditched it.
“The price cap is only on standard variable, ie default tariffs, which you're on if you've not actively switched.”
While energy prices are forecast to marginally fall again in January - and for the two quarters of the year after that - the cap is not expected to fall quite as low as in summer 2024. This could make a 12-month fix a more favourable option for those looking to make a saving.
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According to the Money Saving Expert’s recent newsletter, Outfox the Market’s Outfox the Price Cap (Oct 24) Fix'd Dual v2.0 deal offers the cheapest rate, priced 9.4 percent less than October’s price cap.
EDF’s Essentials 1yr Oct25v3 tariff, which also accepts those on smart prepay, is offering a rate priced 8.9 percent lower than today’s price cap.
British Gas’s Fixed Tariff 12M v8 also offers a rate priced 8.9 percent lower.
Meanwhile, Octopus Energy’s 12M Fixed October 2024 v1 and E.on Next Fixed 12M v28 both offer tariffs priced 8.8 percent lower than the current price cap.
Mr Lewis added: “Lots of ‘I don't want to switch because you have to have a smart meter to do it.’ That's not correct. Of the four cheapest fixes on the market, two require you to have a smart meter, two don't. So switch to your cheapest that doesn't (who your exact cheapest is depends on use and region hence why I say do a comparison).”
