Martin Lewis issues one week warning to British Gas, Octopus, Eon, EDF, and OVO energy customers
Martin Lewis has issued a one week warning to all energy customers across the UK, which includes those who are with the likes of Octopus Energy, British Gas, Eon, OVO, or EDF.
It has been a turbulent couple of years when it comes to paying for gas and electric in the UK, with prices sent sky high across Europe in the aftermath of Russia's invasion of Ukraine.
With the situation calmer than it has been in recent years, we're not quite out of the woods with the cost of living crisis and into a period of calm just yet, with prices still fluctuating significantly every quarter.
That's due to something called the energy price cap, which for autumn will see energy bills increase significantly for households across the country.
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What is the energy price cap?
The energy price cap is set by the UK's energy regulator, Ofgem.
It is the limit the amount that an energy supplier can charge for their default tariff. In other words, the total you will pay if you use your gas and electric.
As it stands, the cap is sat at £1,568 a year for a typical home across Great Britain.
In real terms, this is down significantly from where it was in October 2023 where it sat at £1,834.
What is Martin Lewis warning?
In his latest Money Saving Expert newsletter, Lewis has given a one week warning regarding the energy price cap.
That's because it's on the rise; increasing significantly by 10 percent. It'll go up from 1 October, which is next Tuesday.
In highlighting the price cap, Lewis has alerted customers to one offer available that can save you from paying the 10 percent increase immediately.
"EDF has just launched its Essentials Fixed Oct25 one year fix for new and existing customers, locking in the current Price Cap in every region for a year," Lewis writes.
"As the Price Cap will rise next Tuesday (1 October) by 10 percent, this means an almost immediate saving."
Should you fix for a year?
If you fix your energy bill for the next year, it means you won't be subject to changes to your bill.
That might be a good thing, given that predictions from analysts at EDF and Cornwall Insight say you will pay 11 percent more in the next year if you stay with the price cap fluctuation.
In October, the price cap will rise to £1,717 per year, which is an increase of £149 per year. So if you fix using the likes of EDF's deal, that's an immediate saving.
For those looking to switch and fix, Lewis previously said: "Many cheap fixes are disappearing, so waiting may mean you lock in at a higher rate. Of course, if world energy rates drop, prices could be cheaper by then, but there's no way of knowing.
"Plus, in competition terms, firms know that once October hits, more expensive fixes will look relatively better compared with the new higher price cap. So our best guess is if you're doing this for peace of mind, sooner is likely safer."
Topics: Martin Lewis, Money, UK News, Cost of Living
Tom Earnshaw