Martin’s rule of thumb is if you find a fix for up to 2% more than the current Ofgem Price Cap, it’s predicted you’ll save over the year compared with staying on the Price Cap
The Martin Lewis money-saving riddle has been solved – and it’s all about the “most important thing to understand” when choosing energy tariffs. British Gas, OVO, EDF, EON, and Octopus Energy customers should sit up and listen.
The financial whizz has thrown in his two cents with a fresh guide pondering fixed vs variable energy deals. Chirping up on MSE, he explained: “The most important thing to understand is that price-capped tariffs are variable, and the prices change every three months in line with the Cap. So when considering if it’s worth switching to a fixed deal, you need to look at what is expected to happen over the course of the next year.”
Don’t get caught out, a fixed tariff may seem a steal now but could pocket you a loss if energy prices take a tumble later on. Martin Lewis lays down the law – if you spy a fixed tariff just 2 per cent above the current Ofgem Price Cap, snapping it up could be better over year-long stretch than sticking with the cap.
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Looking ahead to April to June EDF Energy has piped up predicting the price cap could hike to an eye-watering £1,790 – that’s up from the previous January to March price cap.
Brits are facing a confusing time with energy bills, as it turns out there are non-energy costs linked to the broader energy system still to be set for April to June. These extra charges cover stuff like using the transmission and distribution networks, eco incentives, and making sure electricity demand matches supply, reports Birmingham Live.
The energy company elaborated on its expertise, stating: “As Britain’s biggest generator of zero carbon energy, we’ve a deep understanding of the energy market. This allows us to predict future changes to the Ofgem energy price cap, or the Default Tariff Cap, as it’s also known.
“Each week we update this page with new information about changes to the cap on energy prices, and how it affects your energy tariff choices.”
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