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Money guru Martin Lewis has issued a warning to all bill payers in the UK to act now and avoid having to pay more for their energy later this year.
Writing in his latest email update, the Money Saving Expert founder says that “the energy crisis is far from over,” with bills expected to rise again in the final quarter of 2024.
The Ofgem energy price cap has seen two consecutive drops since April, falling from £1,928 in January to £1,568 in July – a decrease of £360.
The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy if you’re on a standard variable tariff. That includes most households. It is expressed as an annual bill for an average home.
It is not the maximum you can be charged, which still depends on the amount of energy you use.
Some experts predict the price cap will rise by a substantial ten percent in October, writes Mr Lewis. It’s also thought it will stay at this elevated rate from January to the end of March.
To avoid paying more over the next year, the personal finance expert says people should consider locking in to a fixed price now. He recommends several providers which are offering the cheapest standalone energy fixes for 12 months.
The cheapest is Outfox the Market, which works out at 1 percent less than the current price cap on average. British Gas and EDF both work out the same, while Ovo’s deal is 1 percent higher.
Mr Lewis also recommends consumers look at tracker tarriffs. These follow a price index directly, such as wholesale energy costs, but they all work a bit differently.
E.on offers a tracker tariff where the unit rates are discounted, so better for higher users. Meanwhile, EDF’s tracker discounts the standing charges, which would benefit lower energy users more.
Octopus’ tracker tariff changes rates based on daily energy costs. This has been 31 percent cheaper than the Price Cap on average over the last year – but prices can rise if wholesale energy costs do.
For those trying to save on energy bills in the coming year, it’s worth researching if you could get a better deal. MSE’s Cheap Energy Club allows you to compare all of the deals on offer.
And for the latest cost of living and DWP news, read The Independent’s regularly updated guide
