Households concerned about their energy bills have been encouraged to take action before 1 April. Money saving expert Martin Lewis suggests that switching to a fixed tariff now could help some secure more affordable prices.
During a recent appearance on This Morning, Lewis explained that securing a deal could provide protection if prices increase later. He stated those who are “risk averse” may want to fix their energy rate so their bills cannot rise. Lewis informed viewers that only a small number of fixed deals are currently cheaper than the price cap. He says the cheapest fixes available to many households are now approximately 7% cheaper than the cap, although two weeks earlier deals were roughly 14% cheaper.
He cautioned consumers that not every deal appears automatically on comparison websites. According to Lewis, many price comparison sites conceal tariffs that do not pay them commission.
This means some of the cheapest deals may not appear in the initial search results. Lewis recommended using a comparison site that displays the “whole market” or ticking a box that says “show all tariffs”.
“You might find a fix that’s cheaper than the price cap,” Lewis said in the clip shared on TikTok. He added that if someone is worried about future increases, locking into a cheaper fix now could be the “safe thing to do”.
The timing is crucial because the energy price cap is set to change again. According to Ofgem, the cap will decrease by around 7% from 1 April.
For an average household paying by Direct Debit, the new cap will decrease to approximately £1,641 per year, down from £1,758 between January and March.
Ofgem explains that the cap restricts how much suppliers can charge for each unit of gas and electricity for customers on standard variable tariffs.
The regulator revises the cap every three months, meaning bills can still increase or decrease depending on wholesale energy costs.
However, Lewis cautioned that energy markets remain volatile. If wholesale prices plummet rapidly, more affordable fixed deals could become available later.
Research from Ofgem reveals millions of households continue on standard variable tariffs linked to the cap. These customers automatically see their bills alter whenever the cap is updated.
Lewis stated the key is determining how much risk you are comfortable with. For those desiring certainty over their energy costs, he suggests switching to a cheaper fixed tariff before April could offer peace of mind.