MARTIN Lewis has urged households still on a standard variable tariff to switch to a fixed tariff as soon as possible.
The founder of MoneySavingExpert.com has recommended billpayers who haven't yet fixed to hold off until new deals are released later today - giving the exact time he expects cheap deals to be available to 'substantially' beat the rise.
Speaking on BBC Radio 4’s Today Programme, Mr Lewis said the cheapest fixed deals currently available were around 4% cheaper than the current price cap, which would increase to around 10% less once Ofgem’s latest increase takes effect from April 1 .
“Based on the predictions at the moment, once it goes up in April it ain’t coming back down to these levels for the next year. So as you can fix currently at cheaper than the current cap, never mind before it goes up, it is a no brainer to fix.”
Energy Price Cap to rise 6.4% on 1 April. What it really means & what you should do. My instant reaction briefing… pic.twitter.com/9I35y82L67
— Martin Lewis (@MartinSLewis) February 25, 2025
Mr Lewis suggested consumers wait until around 3-4pm on Tuesday to check for deals, and to make sure to use comparison sites that take in the whole market by default rather than cutting out some suppliers who do not pay to be listed, as he understood some cost-effective deals were due to be launched today.
He recommended his own Cheap Energy Club, as it compares all energy deals, rather than just the sponsored options.
“And remember that when you do a comparison, remember that the savings you’re given on the cheapest fix are compared to the current price cap. So they won’t look big, they might say £30, £40 a year. But remember it’s going up by 6% so if you do nothing your price would rise whereas if you fix your price would drop," he said.
He elaborated in a video post on Twitter/X: "I wouldn't do a comparison until three or four this afternoon, because I'm hearing some cheaper fixes will be coming in.
"So I would wait, because you may be able to get a cheaper deal if you wait a little bit."
He also added some advice for lower energy users: "Some may want to consider, if you have very low usage that both British Gas and EDF have trackers that track the price cap up with £50 off standing charges per year."
