Money Saving Expert Martin Lewis has advised homeowners on how to best deal with the impending rise on gas and electricity bills.
The energy price cap will climb for about 22 million users on April 1st. People on default tariffs who pay by direct debit will notice a £693 increase in their annual bill, from £1,277 to £1,971. Customers who pay in advance will face a £708 increase, from £1,309 to £2,017.
Due to the uncertainty of the market, Martin warned on his ITV show that most customers should “do nothing” rather than looking for better deals.
The price cap is designed to prevent energy firms from earning excessive profits while also guaranteeing that customers pay a reasonable price for their energy.
Homeowners previously switch energy suppliers and get the best deals, but Martin has warned that there is “no market fix” and that more price hikes are expected in October.
Speaking on the Martin Lewis Money Show Live, he explained, “If we assume that in October, the price cap stays where it is in April, you would have to find a fix that is less than 44% more expensive than where we are right now for it to be worth fixing.
“If we think it’s going to go up in October… by 20%, you’d need to find a fix that is now more than 59% more than the price cap today.”
Currently, the cheapest fix is 68 % more than the existing price cap, which is significantly more than the April 1 price cap. Understandably, for those concerned about rising expenses, an article on Money Saving Expert’s website has been released, offering even more recommendations on how to deal with rising energy bills.
Martin continued, “Now of course anything can happen. But there isn’t any market fix that you should be going for right now. Maybe some existing customers in certain circumstances with high or low use might find one.
“But the big message for most people – do nothing. Stick on the price cap. Don’t fix. Do nothing is still the answer.”