Money guru has said people using power companies Octopus Energy, British Gas, E.ON Next, OVO Energy, Scottish Power, and EDF need to change tariffs ‘now’
Martin Lewis has given anyone who drives a car or has a contract with energy companies such as Octopus Energy, British Gas, E.ON Next, OVO Energy, Scottish Power, and EDF a key date. Appearing on BBC Newsnight, the personal finance expert explained when the true impact of the Iran war will hit UK consumers.
And it comes just afgter he told anyone with a price cap tracker account for home power to switch their tariffs ‘right now’. On the rises he told host Victoria Derbyshire: “This is all about timings. Of course, this is not just about the spike that we’re seeing in oil and gas prices. It’s about how long that spike lasts for. The longer it lasts for, the worse the situation gets. Now the imminent problems, we’ve already seen petrol and diesel prices go up. Although the percentage rise isn’t that high, it won’t be very pleasant for people. The most painful rise that we’ve seen is in heating oil, and LPG oil.
“Ultimately, the decision here is really tough. Now, if you’ve got enough oil and LPG left, you could, of course, wait this out and hope that things are going to get better, but there is a realistic chance that things are going get worse. This is a global economic problem on the back of a huge conflict in the Middle East, and none of us know which way that’s going to go forward.”
The key date is at the end of May, Mr Lewis explained: “Now, the real issue on energy bills, and this is what everybody needs to understand, and the real political issue on the energy bills, will come at the end of May not the end of June. That is because at the end of May we get the announcement for the July price cap. Now almost certainly at this point, that July price cap will be more expensive than the April price cap. However, how much more expensive depends on how long this lasts for. If when the May price cap is announced, wholesale rates have dropped back to normal, then even though the July price cap will go up, the government would be able to say, look, it’s going up, but it’s going up in the lowest use period of the year, April to October, and it should come back down again in October.
“If though, we’re in May when that price cap is announced and we’re still in this position or potentially a worse position, that’s the ticking time bomb. Because at that point, there won’t be any cheap fixes available, we’re going to have an announcement that the July price cap will go up, and we will be in the assessment period for the October to December, getting up for winter price cap and that will look like it’s going to stay high too. And that’s when the calls will start to come for the government to start to look at intervening in the energy market.”
Inflation will be higher than expected throughout 2026 as the conflict in the Middle East pushes up energy prices, the British Chambers of Commerce has warned. Economists at the influential business group also warned that UK economic growth will slow and unemployment will continue rising, in a downbeat outlook for the Government.Oil prices have soared above 100 dollars a barrel for the first time since 2022 in response to the crisis.
London’s FTSE 100 Index fell nearly 2% soon after opening as the Middle East conflict caused an acute supply crunch.
Mr Lewis has urged customers of energy firms to switch their tariffs. Writing on X, Mr Lewis warned: “Important: If you can get off the Energy Price Cap right now, you should and urgently!”
“The wholesale gas rate is spiking due to the Iran conflict, and it is a prime driver or UK elec prices. If that’s sustained (big if), it will likely push the Price Cap rate up from July
“Some of the cheap fixes from before the weekend haven’t (yet) been pulled, so you can still lock in a rate at around 14% less than the current Price Cap, both saving you money and giving peace of mind that the rate can’t rise. You can do a whole-of-market comparison via http://cheapenergyclub.com
“However, many firms are reassessing their fix prices today and may reprice their deals upward. There’s a risk many of the current cheapest fixes will be gone by this time tomorrow. Plus, fix now, and unprecedentedly the rate you lock in at will be reduced on 1 April. This is because govt is changing the underlying way energy bills work and moving some policy costs to general taxation. That reduces the elec and gas unit rates even for those already on fixes. So even if you fix now the amount you pay will drop by 7% to 9% on typical usage on 1 April.
“Fixes are available for most payment methods except prepay. Those on smart prepay can look at the EDF Simply Tracker tariff, which is effectively a price cap tariff with £100 lower Standing Charges (and £70 extra cashback on top via the link above). PS How to know if you’re on a Price Cap? The Price Cap only applies to firms’ Standard Variable tariffs. It’s the default tariff you’re on if you haven’t chosen another deal, or your deal (eg a fix) ended and you did nothing. If you’re fixed, on an EV tariff, a time of use tariff, or other specialist tariff, you are not on the Price Cap.”
