Martin Lewis says UK households can slash their energy bills by 7% if they act now (Image: ITV)
Martin Lewis says UK households can slash their energy bills by 7% within just five working days if they “act now”.
The advice comes after increased by 1.2% this month as came into effect on January 1.
The increase means that the typical energy bill for homes in England, Scotland and Wales has now gone up from £1,717 a year to £1,738 – around £1.75 extra per month.
An extra £1.75 each month may not sound like much but the increase comes on top of a previous 10% hike in October last year – and is expected to go up yet again in April.
Analysts Cornwall Insight suggest that households could face a 3% rise due to the “turbulence of wholesale markets”, warning “consumers must brace for continued fluctuations”.
With further price increases looming, Martin Lewis says “the easiest and safest route” is for households to fix to a cheaper fixed energy tariff.
According to the MoneySavingExpert (MSE) founder, households that switch will pay around 7% less for their energy compared to those on Price Capped tariffs and moving to a cheaper rate can prevent any future price hikes.
Writing in his latest MSE newsletter, he said: “Most homes are on an Energy Price Capped tariff. The Cap went UP 10% on 1 Oct, UP another 1% on 1 Jan and it’s now predicted to go UP 3% to 5% on 1 Apr. Yet act NOW & you save now, and can prevent future hikes.
“The Price Cap isn’t a total cap on what you pay, it’s a limit on the daily charge & unit cost of energy, so use more, pay more. Most firms charge at the limit, and these limits are high now, meaning the Price Cap is a pants cap, as most can easily compare & switch to a cheaper deal.
“Move to the cheapest fix and within five working days you’ll be paying typically 7% less than what those on Price Capped tariffs pay. Plus, the rate is locked in so you get peace of mind that it won’t change, whereas the Price Cap’s predicted to rise further.”
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Martin Lewis recommends that households check to view the best deals currently available on the market. 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.
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 by switching.
Households should remember that the price cap limits the amount an energy supplier can charge for units of gas and electricity but it isn’t the absolute maximum price you’ll pay for energy as it’s based on usage – so if those that use more energy will pay more.