The Money Saving Expert founder broke his social media break to deliver an ‘urgent’ message
Households concerned about their energy costs once the current price cap ends may be able to find a more affordable option through fixed tariffs, although these opportunities could vanish sooner rather than later. Martin Lewis has called on people to take swift action after identifying a knock-on effect from the Middle East ceasefire.
The financial expert highlighted that the Middle East ceasefire had caused certain fixed energy tariffs to drop below the April price cap. However, how long these deals remain available may well depend on the duration of the ceasefire itself.
The ITV presenter acknowledged he’s not ‘properly back on social yet’ but felt compelled to share his analysis, believing this shift in the unpredictable energy market could ‘give respite to some’.
The MoneySavingExpert founder specifically urged those currently on the price cap – in other words, households on variable or non-fixed tariffs – to investigate whether they could avoid the expected July increase by using the Cheap Energy Club tool on his MoneySavingExpert website.
The Ofgem energy price cap dropped by nearly 7% at the start of April. It is scheduled to be reviewed in July, when it is widely anticipated to rise substantially due to the continued impact of the Middle East conflict. The energy price cap establishes the maximum amount suppliers can levy per unit of energy and standing charge for customers on a standard variable tariff.
It doesn’t apply to fixed energy tariffs while they’re within their contracted period. Lewis has been taking a brief break but momentarily returned to provide updates on X, disclosing that particular fixed tariff options have now dropped below the current price cap threshold. He warned, however, that these offers could disappear as quickly as they’ve emerged.
The MoneySavingExpert has previously highlighted that when considering whether to fix your energy expenses, the crucial factor may hinge on your tolerance for risk.
‘Fixing’ your energy bill involves selecting a fixed tariff agreement that keeps your costs at a steady rate over a designated period. Throughout this time, though, the price cap could shift in either direction, potentially resulting in you paying more or less than those on variable rate tariffs.
From April 1 to June 30, the energy price cap has fallen by 6.6% in comparison to the previous cap. This decrease will generate savings of roughly £117 per year for typical households on variable tariffs.
MSE’s Cheap Energy Club warns: “Energy wholesale rates are spiking due to conflict in the Middle East, meaning many firms have pulled fixed deals, or made them more expensive. Whether you should fix now depends on how risk averse you are and what you think will happen.
“If you’re one of two-thirds of households on the Price Cap, we know rates are locked in until July, and if the turmoil ends before then, we’d expect cheaper fixes to return – if so, sticking on the Cap could be the best outcome.
“But if the current situation lasts a long time, fixing now is likely the better option, but you may pay a premium. You can do a full comparison to see your options.”
