Money Saving Expert Martin Lewis has issued a critical warning to anyone who recently secured a fixed energy deal. With the Ofgem price cap set to rise again in April, understanding your rights regarding exit fees is crucial.
50-Day Window to Avoid Exit Fees
Martin Lewis, the founder of MoneySavingExpert.com, has advised consumers that they can avoid early exit fees if they leave a fixed energy tariff within the last 50 days of their contract. This provides a window of opportunity to switch to a better deal without penalty.
Strategic Advice for Consumers
In a recent video message, Lewis explained, “A quick energy need to know if you’re on a fixed tariff or thinking of getting one. They cannot charge you early exit fees if you leave a fix within the last 50 days. So from day 49 onwards, no early exit penalties. You’re absolutely free to leave if you choose to.”
He further advised, “So it’s a very good idea to work out when your fix ends and put 50 days beforehand in your diary to do a comparison to see if you can then find anything cheaper. If you can, you’re free to switch and they can’t lock you in with penalties. If you can’t, stay where you are and milk it out till the last moment.”
Ofgem Price Cap Increase
Ofgem has confirmed a 6.4% increase in the energy price cap from April. This means the average dual fuel household paying by direct debit will see an annual increase of £111, bringing their bill to £1,849.
Understanding the Price Cap
It’s important to note that the Ofgem price cap does not limit your total energy bill. Instead, it sets the maximum unit price for gas and electricity, as well as the maximum daily standing charge. Your actual bill will depend on your energy consumption.
Price Cap Variations
- Pre-payment meters: Increase from £1,690 to £1,803 per year.
- Payment upon receipt of bill: Increase from £1,851 to £1,969 per year.
What This Means for Energy Customers:
Understanding the 50-day rule can help you avoid unnecessary exit fees and potentially switch to a more favourable energy deal. Stay informed about the Ofgem price cap changes and manage your energy consumption to control your bills.
- Call Energy Advice Helpline for free on 0800 802 1869
- Complete our short eligibility checker to find out if you qualify for free help to reduce bills or improve the energy efficiency of your home.
Source: Information gathered from reports published by the Manchester Evening News.
