Ofgem’s energy price cap rise will be implemented on the 1st of October which will leave countless households across the country watching their energy bills increase by up to 10% just ahead of the winter season. However, a simple switch could stave off the money pinch for people using certain energy tariffs.
On the Martin Lewis Podcast, the host revealed that some of the UK’s biggest providers have actually cut their prices this week. Meaning that switching tariffs days before the price cap rise could save you money.
The Money-Saving Expert shared: “If you fix at the moment, all the cheapest fixes are more expensive than the current price cap but up to 7% cheaper than the incoming price cap. Which is of course effectively only 10 days away.
“This week we’ve had 3 new fixes launched that are cheaper than they were and are the cheapest stand-alone fixes on the market. One is from E.On, one from British Gas and one from Outfox The Market. The cheapest of those is 7% less than the October price cap.”
80% of homes in England, Scotland and Wales are on standard tariffs. These tariffs are directly impacted by the price cap rise and the expert highlighted that these are the very same homes that could benefit from switching to a fixed tariff before October 1st.
These fixed tariffs will cement a household’s monthly energy bills for usually a year, and Martin suggested they likely won’t be missing out on any major price cap drops in that time. Admitting he was doing “a bit of crystal ball gazing” based on current predictions, he declared that being on a fixed tariff for the next year “looks like it wil be a winner” before advising listeners to check his deep-focus on energy tariffs in his previous podcast episodes.
