Consumer champion Martin Lewis has urged millions of households on standard variable energy tariffs to compare deals now, describing it as the "sweet spot" to switch because savings are finally being shown against the higher July Price Cap. Writing in the latest MoneySavingExpert.com newsletter, Lewis said: "It's the SWEET SPOT to compare energy prices, as finally your comparison result will show the real saving. Many can fix & save £200+. Check NOW!"
Price Cap Rise and Its Impact
Households in Scotland, England and Wales saw their energy costs rise from July 1 after Ofgem increased the Energy Price Cap by around 13 per cent. Lewis explained that comparison sites are now using the new, higher cap as the benchmark, meaning the potential savings shown are far more realistic than before the latest price change took effect. Around six in 10 households are currently on their supplier's standard variable tariff, with prices linked to the Energy Price Cap.
Savings from Fixed Deals
Lewis said those customers are likely to benefit most from comparing fixed-rate deals. The cheapest fixed tariffs currently available can be around 16 per cent cheaper than the current Price Cap, although the exact saving depends on location and energy usage. He also noted that forecasts suggest the next Price Cap, covering October to December, is likely to remain at a similar level, meaning households fixing now could lock in savings for the coming months if predictions prove accurate.
Cautions for Fixed Tariff Customers
However, Lewis stressed that people already on a fixed tariff should think carefully before switching again. If a fixed deal has fewer than 50 days left to run, customers can usually move to a new tariff without paying an exit fee, making it worthwhile checking the market. But if there are more than 50 days remaining, he said it is generally better to stay put if the existing deal is significantly cheaper than those currently available, rather than paying an exit fee to move to a more expensive tariff.
Special Considerations
Lewis also noted that fixed tariffs may not be the best option for everyone. Very low energy users could benefit more from tariffs with lower standing charges, while people with solar panels, electric vehicles or home battery systems may be better suited to specialist tariffs designed for those technologies. Households can compare the latest deals using whole-of-market comparison services to see whether switching could reduce their annual energy bills.
