Martin Lewis has issued a warning to most Brits who are still on a price-capped energy tariff that they are being “ripped off”.
The energy regulator Ofgem will raise the price cap by 2% between October 1 and December 31, pushing energy bills up for a typical dual-fuel household on a variable tariff to around £1,755 per year. However, there is a range of fixed tariffs available right now that are cheaper than the price cap, and the Money Saving Expert said that switching to one could save people hundreds of pounds. Sharing a link to his podcast on social media platform X, Mr Lewis wrote: “Two-thirds of you are still on a price-capped tariff. It’s a rip-off for most. You should be paying typically £200ish less a year.”
Latest figures show more than a third of energy customers (37%) are now on fixed tariffs, which means they are protected from October’s rise. Fixed-rate tariffs allow people to lock in the price of their energy units for a set period, typically between 12 and 24 months.
Those who aren’t on a fixed tariff have been urged to compare deals and fix, as unpredictable and volatile wholesale gas prices could see bills jump further into the new year.
According to research by Uswitch, some 41 fixed deals from a variety of large and small suppliers will finish by the end of October. Consumers automatically roll onto their provider’s standard variable tariffs, which are some of the most expensive on the market, unless they take action.
Echoing Mr Lewis’s calls, Will Owen, energy expert at Uswitch.com, said: “Households who signed up for a 12-month fix last autumn, or a 24-month deal in October 2023, should check when their switching window opens.”
Sharing a “little-known hack”, Mr Owen said households on fixed deals are free to switch 49 days before the tariff ends without paying any exit fees.
He continued: “This is a particularly strong time for savings, with around 26 fixed deals currently available which beat the October cap and savings of around £241 on the market.
“If you’re on a standard tariff, now is the time to protect yourself from the upcoming price rise. Run a comparison to see what deals are available to you and how much you could save. Fixing your energy tariff to cheaper rates should be a no-brainer for all households who are able to do so.”
People can use calculators on comparison and savings sites, such as Money Saving Expert, Uswitch, or Compare The Market, to find out which tariff could work best for them.
