Global gas prices have jumped after tensions in the Middle East, and Martin Lewis is urging households to check energy deals now before cheap fixes disappear.
Money expert Martin Lewis has issued a warning to households about energy bills. His message is simple: if we can lock into a cheaper fixed deal, now is the time to look.
But the situation is slightly confusing. Energy bills are actually falling from April. So why the warning?
Here’s what’s happening
The energy price cap is dropping by about 6.7% from 1 April, bringing the typical annual bill down to around £1,641 for those of us on standard tariffs.
But global gas prices have jumped after tensions involving Iran shook energy markets. Because the UK buys much of its gas on global markets, higher wholesale prices mean higher household bills.
The price cap is reviewed every three months, and some forecasts now suggest the next update in July could push bills up again, potentially by around £160 a year if gas prices stay high.
That’s why Martin Lewis says locking in a cheap deal now could help protect households if prices rise later in the year. “If you can get off the Energy Price Cap right now, you should – and urgently,” the MoneySavingExpert founder said.
Who is affected
Most households are currently on standard variable tariffs, which are controlled by the energy price cap. That means their prices change whenever the cap is updated.
A fixed tariff works differently. It locks in the unit price for a set period, usually around 12 months.
Some of the fixed deals available recently have been cheaper than the new April price cap, which is why some experts say locking one in now could protect households if prices rise later this year.
Why Martin Lewis says act now
Martin Lewis warned that fixed deals were disappearing fast, saying: “If you’re going to do this soon, you need to do this now.”
In fact, the number of fixed tariffs dropped from 38 to 17 in just one week between 28 February and 5 March.
That means the cheaper tariffs available today may not stick around. But the money guru stresses this is about getting a cheap fix, not just any fix.
If we find a fix that is around the same price as the April cap or cheaper, it could offer protection if prices rise later in the year. If the deal is much more expensive than the cap, it may be worth thinking twice.
We can compare current deals using Money Saving Expert’s Cheap Energy Club tool.
What to check before switching
If we are already on a fixed deal, leaving early can trigger exit fees of around £50 per fuel. If we are within 49 days of the end of a contract, suppliers cannot charge those fees.
MoneySavingExpert team regularly update their guide on fixed tariffs here.
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