A finance expert has urged Brits to “act now” to ensure they save money on energy bills over the next 16 months. According to Martin Lewis, many households could save up to seven percent on their bills by making certain changes.
Writing on his site Money Saving Expert (MSE), Martin urged people to consider switching to a cheaper energy price-capped tariff. Following a hike in October and January the energy cap is predicted to rise again in April.
But there are some deals out there that would mean you avoid this rise. He explained: “Most homes are on an energy price capped tariff. The cap went up 10 percent on 1 Oct, up another one percent on 1 Jan and it’s now predicted to go up three percent to five percent on 1 Apr.
“Yet act now and you save now, and can prevent future hikes.” Martin added: “The easiest and safest route is fix now.”
For anyone still unsure as to what the cap is, he clarified that it is not a total cap on what you pay. It is actually a limit on the daily charge and unit cost of energy, “so use more, pay more”.
Martin continued: “Most firms charge at the limit, and these limits are high now, meaning the price cap is a pants cap, as most can easily compare and switch to a cheaper deal.” This will apply to most homes in the UK he said, with roughly eight in 10 households on a price capped tariff.
If you’re unsure whether you are, you can check with your provider or use the online MSE comparison tool. “Move to the cheapest fix and within five working days you’ll be paying typically seven less than what those on price capped tariffs pay,” he said.
“Plus, the rate is locked in so you get peace of mind that it won’t change, whereas the price cap’s predicted to rise further.” With this in mind he shared a list of the current cheapest standalone fixes. However, it is important to note that these deals are only offered in England, Wales, and Scotland – not in Northern Ireland.
He first recommended the E.on Next Fixed tariff. This is a 16 month contract of which only 10,000 are available.
On average, it’s seven cheaper than the current price cap, so currently a £120 a year saving for someone on “typical use”. The tariff is only available via MSE and E.on Next direct.
If you apply via MSE, new and existing customers get an extra £10 bill credit, and £20 MSE cashback. Other important points to note:
Then he listed the British Gas Fixed Tariff. This is a 12 month fixed tariff with no smart meter needed. You will save an average of 5.2 percent compared with today’s price cap, including £20 MSE dual-fuel cashback. It also has a £50 early exit fee,
The EDF Simply Fixed is another 12 month tariff with no smart meter needed. You can save an average of 4.9 percent compared with today’s price cap, including £20 MSE dual-fuel cashback for new customers only. This tariff has a £25 early exit fee.
The Outfox Fix’d Dual is a 12 month tariff. Again no smart meter is needed. This tariff allows you to save an average of 4.5 percent compared with today’s price cap. It has a £50 early exit fee.
For more information, visit moneysavingexpert.com/latesttip .
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