Martin Lewis has warned households not to 'just jump' at the first fixed-rate energy bill offered to them - because it may cost them more in the long run. Major UK energy supplier Ovo is offering its first deal below the Government’s £2,500 cap on typical household bills with a one-year fixed tariff of £2,275 to existing customers.
That deal undercuts the Government’s energy price guarantee (EPG), which reduces the amount people can be charged per unit of gas or electricity, to an annual equivalent of around £2,500 for a typical household in Britain.
Ovo, which has around four million customers, said it launched its new tariff because customers desired “the security of a long-term fix to protect them against the continuing energy price uncertainty”. But Mr Lewis, founder of MoneySaving Expert, said “people need to be very careful not to just jump on a fix because it costs less than they’re paying right now."
