Martin Lewis urges millions of Brits to ‘do nothing’ about energy bills now

Martin Lewis urges millions of Brits to ‘do nothing’ about energy bills now

June 8, 2022

MoneySavingExpert founder Martin Lewis has issued a new update on energy deals.

The financial guru has urged the majority of homes to "do nothing" and stick on the energy price cap rate.

He said there were no cheap open market deals at the moment.

Experts are predicting the price cap could rise to £2,800 this October, followed by an increase to £2,900 in January.

Based on these figures, Martin said those looking for price certainty might want to fix into an energy deal.

In his weekly newsletter, he explained you should be looking for a one-year fixed rate tariff no more than 35% to 40% above the cap.

Martin said: "If the predictions are right, on average you'll pay 35% more over the next year than you do now.

"Of course, some of this is crystal-ball gazing and averaging, but overall my best guess, as a rule of thumb, is…

"If you're offered a year's fix at no more than 35% above your current price-capped tariff, or 40% more if you very strongly value budgeting certainty, it's worth considering."

The cheapest fixed rates are typically for existing customers, but Martin has highlighted some open market rates that fall below his 35% to 40% threshold.

The lowest price open market tariff that "just scrapes" into his equation is from Ovo Energy, which offers a one-year fix on its Better Smart plan.

In terms of existing customer deals, Martin highlighted an E.on (Next) V14 one-year fix that is 30% more.

There are also one-year tariffs from SSE, Ovo Energy and British Gas that work out at 32% more compared to the current price cap, if you're already a customer.

Martin explained how two-year fixes are harder to predict in terms of value for money, as it is less certain how energy prices will fluctuate.

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