Martin Lewis suggests who should now fix energy bills as cap set to soar | Personal Finance | Finance
Mr Lewis revealed a few daunting insights today on BBC Radio 5 Live, talking with Nihal Arthanayake on a range of topics. One of which, regarding the energy price cap for October, may be the last straw for many household budgets.
Mr Lewis began with a somber note saying: “I said at the start of the program, I promised to let you know when it was time to fix energy and for many, not all, that is today. For the first time in 2022 there are fixes most should consider.
“The reason this is happening is because the energy price cap is likely to be even worse than we thought.”
He shared his top existing customer fixes that are potentially worth switching to and one open market fix as well.
However, Mr Lewis highlighted that as there is no requirement for firms to publish their rates details, these calculations are all based on average that have been reported by the Money Saving Expert audience.
EDF
Fixed total service May 24 version three and four
- Mr Lewis suggested this two year existing customer fix, which is currently on average 24 percent more than the current price cap.
Eon and Eon Next
Fixed online version 14 or Next fixed online version 14
- This one year existing customer fix is currently priced 30 percent more than the current price cap.
SSE
Fixed version 27
- Another one year existing customer fix, the SSE tariff is currently 32 percent more than the current price cap on average.
DONT MISS:
Mr Lewis adamantly advised Britons to try and find fixed tariffs priced at no more than 35 percent more than the current price cap.
He explained that taking into account the expected price cap changes in October, January and April, as well as increased energy usage in winter, Britons will be paying 35 percent more next year than they do right now.
He said: “In April the cap went up 54 percent. You’ll have seen this in your energy bills, taking it to £1,971 a year for somebody on typical use.
“In May, the regulator Ofgem said it would be up 42 percent to around £2,800 a year on typical use. But the latest prediction I have from Cornwall Insight who I tend to think are pretty good with this, is it’s actually gone up, now likely to be up 46 percent taking it to £2,888 per year on typical use.
“Cornwall is currently saying in January we will see another rise on top of the October, only of about one percent taking it to £2,910 per year on typical use.
“The current thinking is that is the first time that the price cap will drop but it will only drop around 10 percent from the January price cap, and remember it went up in October, up in January, so a drop of 10 percent in April will only take us down to £2,600 a year on typical use.
“That is still very substantially more next April than we are paying right now.”
He concluded: “If we take all that together, four months on the current rate, three months on the October price cap, three months on the January price cap, two months on the April price cap, and we adjust it for the fact that we will use more in winter. If those predictions are right, on average, over the next 12 months you will be paying 35 percent more than you do right now.”
