The team behind Moneysavingexpert.com has issued an important message to anyone on a fixed energy tariff.
This comes as energy bill consultants Auxilione said average households could be facing annual bills of £4,650 from January and £5,456 from April, an increase of hundreds of pounds from the previous forecast.
The experts forecasted that the energy price cap could hit £4,400 in January but with inflation rising to 10.1 per cent, it is expected to soar even higher.
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Ofgem has asked people to take extreme caution is applied to any predictions for the price cap in January or beyond.
With this, bill payers have been getting in touch with Money Saving Expert, founded by Martin Lewis, to ask if their fixed tariff could be changed as the price of gas and electric rise.
One Martin Lewis fan took the money guru's advice and locked into a tariff when companies had tariffs that will be lower than the price cap, however he shared that he is now concerned.
He wrote to MSE and said: "Following Martin's tip, I took a dual-fuel fix in February this year and have the agreed fix paperwork till February 2024. Will E.on have to honour this even though prices are going through the roof? If this is the case, my direct debit will stay at £120 a month, what a saving. Well done to you all."
In the latest newsletter, MSE has confirmed that energy companies can't changed the fixed tariff that was agreed on unless there are certain circumstances.
The team at MSE said: "A fix means the rates you pay for each unit of gas and electricity are locked in - though what you pay can vary with usage. And if you fix, the energy company must charge you the agreed rate, provided nothing changes with you or it"
The exceptions are:
- If you move home (most fixes aren't portable).
- If you change the person named on the bill (some firms allow it, but others cancel the fix - even if the change is due to a bereavement).
- If you get into arrears (here, the provider can move you to a prepay meter if you don't agree a repayment plan).
- If the energy firm collapses, when you'd likely be moved to a different supplier at the price-capped rate.
Speaking on the forecasted energy bill rise, Conor Forbes, director of policy with Advice Direct Scotland, said: “As gas prices continue to rise, forecasters are being forced to revise their gloomy predictions.
“This latest warning will add to the financial misery facing many households across Scotland.
“There is a lot of talk about forthcoming government action, but there are steps that households in Scotland can take today to seek support.
“Our expert advisers at the national energyadvice.scot service provide free, impartial and practical advice on energy bills, including accessing grants and benefits.”
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