Martin Lewis has issued an urgent warning for people on fixed energy bills.
He highlighted that many billpayers may see their costs "jump to substantially more than the price cap rates" due to losing out on an essential government subsidy. The Energy Price Guarantee previously provided billpayers with a lower level of costs compared to Ofgem's price cap.
However, due to the price cap now dropping below the EPG at £2,074, this safety net will no longer be in place. Mr Lewis is now urging fixed-rate customers to check if their rates have changed.
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Writing on Twitter, he said: "WARNING: On an energy fix CHECK NOW if your price just rocketed. On Sat, those who locked in on costly fixes - usually c.1yr ago - lost the govt 'Energy Price Guarantee' subsidy. If so you will see rates jump to substantially more than the price cap rates."
He noted that there may be some cases where it's worth more money, in the long run, to abandon your current rate and pay any early exit penalties if the fixed rate is substantially higher than the new price cap. Mr Lewis added: "So check if your fixes rates have changed. If so, and it's materially higher than the cap rates you should consider ditching the fix and moving to your provider's price cap (though factor in any early exit penalties)"
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He added that the average direct debit price cap rates from July 1 will be 53.0p a day with a unit rate of 30.1p/kWh for electricity and 29.1p a day with a unit rate of 7.5p/kWh.
