Financial guru said the energy price cap increase means people have limited time to take action
Martin Lewis has urged people to take immediate action after the decision by Ofgem to raise the price cap for energy from October 1 this year. It will increase from £1,568 a year to £1,717 for a household with typical power usage.
Mr Leiis said: "From 1 October, the vast majority of homes in England, Scotland & Wales will see costs jump 10% – so for every £100 you pay today, you’ll typically pay £110. To be more accurate, as most of the rise is on the unit rate not the standing charge, higher users, especially those with gas, will overall see their costs rise by more than 10%, lower users less.
In terms of what people should do about it Mr Lewis had no doubts - switch. He said prices for some deals still available were 7 per cent less than the new October cap - meaning people could save about £120. "Don’t just jump on any fix though – if you’re going to lock in you want to grab the cheapest for your use and location, so use a whole-of-market comparison, like MSE’s Cheap Energy Club, and find out who will let you fix for less. Alternatively, deals like E.on Next’s Pledge, or EDF Ensure are effectively discounted trackers, where they move with the Price Cap, but the unit rates or standing charges are guaranteed to be lower.
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