Famous Money Saving Expert Martin Lewis has urged customers of E.On, British Gas and Octopus to act quickly if they want to make the most of the best energy deals this week. These deals are fixed energy tariffs, meaning that they aren’t impacted by the price cap. Your unit price for gas and electricity will not change for the duration of your tariff. This leads us to ask the question… is it better to stick with the price cap (on a variable tariff), or is it time to fix?
The price cap change
The price cap changes every 3 months, with the next change fast approaching at the end of this week. The July price cap brings great news for energy customers, with the average household bill set to be reduced by £118, or 7%.
However, this benefit will only be short-term, with the next price cap change in October set to bring more grief. The October price cap is currently predicted to bring a 12% increase on energy bills, meaning that now is the best time fix your bill as the cheapest point in the year.
Only 5 days to act!
Although the price cap doesn’t officially change until July 1st, you won’t be able to change deals over the weekend. This means you only have from today till Friday to make the most of these deals!
If you look over the next year at the predicted price cap, and the price cap is what sets the rate for 90 percent of homes because 90 percent of people are on a standard tariff. You would look and say on average you will pay roughly 3 percent less than you do right now.
Martin Lewis
If you’re a customer of British Gas, EDF, E.ON, or Otopus, Martin Lewis recommends switching to a fixed tariff in the next 5 days. This will save you £152 over the next year!
You can also make savings on your energy bill with a range of government-backed schemes and grants. These offer free home improvements that save the average UK household £400 per year!
Should you fix?
Switching to a different type of tariff can be a big choice. If you are unsure if it’s the right choice for you, you can use the Money Saving Expert calculator. Some things to note are:
- Your exit fees. To switch to a fixed tariff, you may be required to pay exit fees to leave your current tariff early. You should factor this in to decide if the savings you’ll make will be worth the fee.
- Credit payments or debts. The calculator only accounts for direct debits, so if you do have any debts with your supplier, this is something to consider.
- Ballpark figures. The calculator provides a good indication of the amount you can save, but remember that it cannot be 100% accurate!
Other ways to save on your energy bills
You can save hundreds off your annual energy bill with the help of government-backed schemes such as the ECO4 scheme. You can get free solar, insulation, and an air source heat pump installed completely free of charge if you qualify.
