Martin Lewis issues urgent warning on energy bills – what you need to do NOW

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Martin Lewis warns bill payers to check whether they can save cash with a surefire deal now as energy prices soar.

Wholesale energy prices have “increased compared to last week” money saving specialist Told.

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Finding definitive deals worth switching can be toughcredit: getty

This could prompt energy firms to pull their cheapest fixed deals, which let customers lock in lower prices for a set period of time.

While these are generally higher than the current price capped tariffs, they could be cheaper in the long run when they rise again in October.

energy price cap The standard limits the unit price of energy to variable tariffs and fixed tariffs.

There are currently over 20 million households on these default prices for gas and electricity.

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The price range currently limits the normal bill to £1,971 per year – though the exact amount you pay may vary depending on usage,

Offgame, energy regulator, expects price range May raise to around £2,800 per year in OctoberWhen the next two-year annual review takes effect.

Reflects Energy Value Cap Wholesale energy costs that have risen in recent months Due to global supply issues and the war in Ukraine.

Wholesale energy prices aren’t passed on to customers immediately, but the spike this week could drive up fixed deals costs.

Martin said on Twitter: “It is plausible that energy companies will pull the cheapest existing customer improvements and replace them with expensive ones. [deals],

“If you’re considering fixing up, my best guess is to leave as soon as possible.”

according to Latest Calculations by Martin’s Money Saving ExpertsIt might be worth switching if you can find a surefire deal that doesn’t exceed 35% off the current price range.

It might also be worth it if you can get one that costs no more than 40% “if you value budget very strongly”.

This is because the amount you pay cannot change because you have set for a fixed period.

The amount you pay on the standard price-capped tariff changes twice a year according to the price range.

it may change in future like Ofgem suggests reviewing the bill limit four times a year Rises more regularly to spread.

The calculations are based on the current estimated price increase of around £2,800 in October and then a 10% drop in April 2023.

But these are only estimates and may change between now and then.

Check Fixed Deal Offers

While locking in lower prices prior to the rise, you may be left locked into a higher paying deal if prices fall.

You’ll pay more than the current price range initially and then pay less as it moves up this winter, but with the goal of saving cash overall, it depends on how much the price range goes up.

MSE said in its guide: “If in doubt, there is nothing wrong in playing safe and staying on the price range.”

You will not find any meaningful reforms openly offered by energy firms, the MSE said.

The cheapest fixed deals that might be worth switching are being offered directly to existing customers, so it’s worth keeping an eye on your messages about any deals.

Experts also warn of high exit fees on some of the deals being offered, so check all the rules before deciding so you know where you stand and if the deal is right for you.

MSE has complete guide For fixing that highlights six surefire deals to be aware of that may be worth pursuing.

But keep in mind that these deals are not available to all customers and can be pulled at any time.

As Martin believes the latest energy price spike may prompt some energy firms to pull them off, it is now worth checking.

Energy Bill Help If You’re Struggling

There are schemes offered by suppliers, local councils, charities and the government that can help.

If you’re struggling with energy costs or other bills, there are many organizations where you can get free advice, including:

You should talk to your energy supplier in the first place because they have plans in place to help with bills and dues, including hardship funds and grants.

For example, British Gas And Octopus Have set up a fund of up to £750 to help customers struggling with their bills.

Your local council can also help with cash and grants if you’re struggling through bills. domestic assistance scheme

You should also check that you are getting all the benefits that you are entitled to.

use one online profit calculator To make sure you are not losing any extra cash.

Similarly, you can Search for charity grants Which helps you pay gas and electricity bills.

There’s even more help from the government along the way, later in the year in the form of a one-time payment worth £1,500 depending on your circumstances.

every house will get £400 off their energy bill this winter.

Universal Credit and certain benefits to those living in a £650 lump sum payment – with Bank accounts hit in the first half within WEEKS,

payment in between £300 will go to pensioners and £150 extra Some are even going for disabled people.

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is on top of £300 annually winter fuel payment Where state pensioners can get between £100 and £300 to offset the cost of keeping their homes warm in the colder months.

Low-income households may receive a one-time payment of £150 under the existing hot house discount plan – Applications open in autumn.

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