Martin Lewis advised consumers not to switch to fixed energy deals right now.
The Money Saving Expert founder hosts a cost of living special on Good Morning Britain today. Viewers have been sending questions to the finance guru ahead of price and bill rises kicking in on April 1.
One viewer asked if now is the time to switch from a variable default tariff to a fixed price energy deal, with gas prices high and the price cap set to jump from Friday. Martin advised viewers to stick to the price cap instead of finding a fixed deal for now. Variable default tariffs are subject to the price cap, which sets a maximum amount for 'typical use'.
Read more: Government confirms prescription price plans
"If you're on the price cap, do nothing," said Martin.
He explained that the price cap - which is used on standard variable default tariffs where customers do not sign up to a fixed price - will rise to £1971 a year. In October it is forecast to rise again to around £2,500 a year for customers who use a typical amount of energy.
Martin added: "That October price cap is based on wholesale rates from the beginning of February this year, until the end of July, so we are two months through that six month period. Based on what's happened so far, the current prediction is that in October it will go up around 25%, which for someone on typical use is around £2,500. That's actually less than it was two weeks ago, when I was predicting it was going to be around £3,000.
"The cheapest fix at the moment is around £2,800, which is more than the predicted October price cap. So, it isn't worth getting a fix, today, it's just not worth it. Sit on the price cap."
"What you want to watch for is, does your firm ever offer you a much cheaper fixed deal? If it was to offer you a fix at no more than 20% higher than April price cap, then I would consider fixing the price, but I can't promise it will work."
After host Susanna Reid remarked at how complicated the choice for consumers is, Martin offered a simple answer: "If you're on the price cap, do nothing. And if you don't know what to do, the safest thing to do is do nothing, stay on the price cap."
