Martin Lewis is urging people who are on two types of energy tariff to switch their deal as soon as possible because they could lose £200 in 2025.
The Money Saving Expert founder has warned that the energy price cap set by Ofgem is set to increase three times in 2025, leaving households £200 worse off if they don’t take action right now to switch to a cheaper deal.
This is because the energy regulator is now predicted to raise the price cap by around 3-6% in April, and another 1-2% in July and October this year.
Taken altogether, the three price rises forecast to be put in place this year would push up prices by about £200 for an average typical use household, Martin said.
Talking on Good Morning Britain, Martin advised that now is the time to switch, and if you’re on the price cap, ‘get off it’.
Martin Lewis: “For the past 5 months, I’ve been calling the price cap a pants cap, it’s pants, it’s more expensive, nobody should be on the price cap with the exception of a few on non-smart prepayment meters where it’s very difficult to do anything else.
“If you are on the price cap which you almost certainly are if you’ve not done anything else in the past year, get off it.
“We’re here, and we’re expecting to see the price cap jump 3 to 4%, and then a couple of percent above that.
“The cheapest fixes on the market are 6% cheaper, so you can save 6% right now on what you’re paying, and the price if you stay on the price cap is going to go up, which from April leaves a 10% difference between the cheapest fixes now compared to if you stay on the price cap.
“That equates on a typical bill, we’re getting on to around £200 a year.
“But most people aren’t doing it. Get up off the pants cap, go onto a whole of market comparison and find the cheapest fix for you.”
Martin said that the cheapest fix for you will vary depending on where you live, and that there are other ‘more sophisticated’ options like the Octopus tariff which changes depending on the time of day, and the EDF Energy tariff which gives you £100 a year off standing charges.
Martin said that if you’re on a standard variable tariff or flexible tariff that’s the price cap, and you should be switching to a fixed tariff as soon as possible.
He added: “If you are, get off the price cap, and do it now.”
