Martin Lewis has sent an urgent warning to Brits to get off of the energy price cap while they can as Middle East conflict is cuasing wholesale prices to fluctuate
Martin Lewis has sent an urgent warning to Brits to get off of the energy price cap while they can.
The Money Saving Expert said that the cost to households of fixing their energy bills dropped following the ceasefire agreement between Iran and the US.
But, he warned this could not last so urged his followers: “Act now and you can lock in a fixed rate below the new lower April price cap, which most of you are on (even if you don’t know it).”
He added: “This is crucial if you want certainty your rate can’t rise, as the cap is predicted to jump 14% on July 1.”
The finance expert said the price you pay is dependent on not only where you live but also your payment method so recommended doing a full market comparison.
Lewis said: “You’re looking for one that saves you even a small amount over the current cap, as far bigger savings will come from July.”
On April 1, household energy prices dropped by 7 per cent. It is anticipated that this reduction will be short lived as prices are expected to increase by 18 per cent from July.
Ofgem’s price cap dropped from £1,758 to £1,641 – a reduction of £117 or around £10 a month for the average household using both electricity and gas.
Although this is an 11 per cent year-on-year decline, it is still £600 more than bill were in the winter of 2020 to 2021.
Due to conflict in the Middle East there is increasing concern about the amount energy bills could rise by. The latest predictions from Cornwall Insight suggest this could be 18% or £288 a year – almost £900 above pre-crisis levels.
Lewis makes note of the current volatility of wholesale prices, as they are continuing to appear to rise and then fall, as peace talks commence and then are halted.
He warns: “So this could be the last chance to lock in below the Price Cap, or equally fixes could get cheaper.”
Lewis added that this is the “safe option” and will benefit most households who will be on the cap without even being aware.
