Martin Lewis says households can “guarantee no future hikes” on energy bills (Image: ITV)
says UK households can guarantee “no future hike” on their energy bills if they do one simple thing right now.
The advice comes as today confirmed 1 as it announced a 1.2 per cent hike to its price cap.
The increase means that the typical energy bill for homes in England, Scotland and Wales will rise from £1,717 a year to £1,738 – around £1.75 extra per month.
While a 1.2% increase may seem small, it comes on top of October’s 10% price rise. It means that for every £100 paid now, it will cost £101.20 from January.
It is predicted that the price cap will rise again from April 1 before dropping slightly in July and again in October, but it is still expected to be higher than the current rate.
Martin Lewis says households can expect to pay a couple of percent more than now on average over the next year.
But the MoneySavingExpert (MSE) says there is a way to save money on your energy bills and avoid any future price hikes, and that is simply by locking into a fixed tariff right now.
He said: “The cheapest fixed tariffs available right now are around five percent LESS than the current price cap. Therefore the simple thing to do is lock into a fix now to save money and guarantee no future hikes.”
Martin Lewis advises households to check to view the best deals currently available. Energy prices will vary depending on where you live in the UK and the amount you use day to day, so it’s crucial to compare prices before locking in.
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Ofgem has also urged customers to take advantage of increasing choice among energy suppliers and look for the best deal to keep their bills as low as possible, adding that households could save up to £140.
Tim Jarvis, director general of markets at Ofgem, said: “While today’s change means the cap has remained relatively stable, we understand that the cost of energy remains a challenge for too many households. However, with more tariffs coming into the market, there are ways for customers to bring their bill down so please shop around and look at all the options.
“Our reliance on volatile international markets – which are affected by factors such as events in and the Middle East – means the cost of energy will continue to fluctuate. So, it’s more important than ever to stay focused on building a renewable, home-grown energy system to bring costs down and give households stability.
“In the short-term though, anyone struggling with bills should speak to their supplier to make sure they’re getting the help they need and look around to make sure they’re on the best, most affordable deal for them.”