The energy price cap will rise to around £2,800 in October.
On Tuesday, the head of the UK's energy regulator, Ofgem, described the soaring price cap as a "once in a generational event", with warnings that millions will face crisis as costs continue to rise. Jonathan Brearley told MPs that the price cap, which is currently at £1,971, will increase due to continued volatility in the gas market.
The energy price cap is the maximum price per unit that suppliers can charge customers. It rose sharply in April, getting to a point where average homes are now paying an extra £700 on their energy bills. The coming rise will strike fear into many.
READ MORE: PayPal issues 'important notice' to all UK users with an account
In April, finance guru Martin Lewis issued advice to households looking for any savings they could make. Unfortunately, Mr Lewis said the vast majority of people should "do nothing" and stick on a price-cap tariff.
In the wake of further price cap rises, however, Money Saving Expert has updated its advice. It said its "best guess" is that "it may be worth switching if you've been offered a fix that's no more than 30% higher than the current price cap (it was 25%)".
EDF Energy, British Gas and E.on appear to be offering fixed energy tariffs that MSE says "could be worth considering" to existing customers. These have rates at 24%, 26% and 30% above the existing price cap, respectively.
These would see rates at less than £2,800 which could save households money in the long run.
However, MSE has issued a number of warnings regarding the tariffs. It said it uses an average cost, so people should always work out how much it will cost them before signing up.
The tariffs, it said, can also be pulled at any time. People should also check the tariff listed on MSE is the one they are being offered, and to watch out for "high early-exit penalties".
You can read the MSE article here
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
