Martin Lewis has highlighted a new energy deal from British Gas that he says is the cheapest on the market, potentially saving households £285 a year. The deal, a 12-month fix, is priced 15.4% below the current energy price cap, according to the Money Saving Expert (MSE) newsletter.
The offer is available to both new and existing British Gas customers. Those already on a British Gas fix can switch without paying an early exit penalty. Lewis noted that wholesale gas and electricity rates have dropped recently, but Ofgem's price cap remains 'stubbornly high'.
The price cap rose from £1,738 to £1,849 on April 1 for the average dual-fuel household paying by direct debit. Over two-thirds of UK households are on the price cap, which will remain at the same rate until July, when it is expected to drop by 8% to 9%.
Lewis advised that fixing now at 15% below the current cap is likely cheaper than staying on the price cap for the next year, based on analysts' predictions. He acknowledged uncertainties but emphasised the value of certainty that a fix provides.
