Martin Lewis Urges Immediate Action as Cheap Energy Tariffs Vanish
Consumer champion Martin Lewis has issued an urgent 'fix now' warning to households, stating that cheap fixed rate energy deals are disappearing "by the minute." This alarming development follows a near 80% surge in wholesale energy costs, triggered by escalating tensions in the Middle East.
Wholesale Price Spike and Market Turmoil
Wholesale energy prices have skyrocketed by almost 80% since the United States and Israel launched attacks on Iran last Friday, with Iran responding through counterattacks. The conflict has spooked global markets, raising fears that oil and liquefied natural gas (LNG) supplies through the Strait of Hormuz could be disrupted or halted entirely.
The United Kingdom, which imports LNG to help meet its domestic gas needs, is being significantly impacted by this global price increase. As a result, energy suppliers have been rapidly withdrawing fixed rate tariffs that could have saved households hundreds of pounds annually compared to Ofgem's price cap.
Disappearing Deals and Supplier Response
Price comparison website Moneysupermarket reports that the number of energy tariffs either removed or repriced has risen to 57 in the past 72 hours alone. Martin Lewis emphasised the urgency during his ITV show, advising viewers on standard tariffs to secure a cheaper fixed deal as soon as possible to avoid missing out.
"If you are on the price cap, the risk averse thing to do is to get a cheaper fixed as soon as possible," Lewis stated. "The cheap new fixes that are available over the last couple of days have either been pulled or repriced substantially upwards so if you're going to do this soon, you need to do this now."
He highlighted that last week, the cheapest fixes were between 10% and 14% below the current price cap, but today, only a few remain, such as one at 9.5%, another at 6%, and a third at 3%, with these offers being withdrawn rapidly.
Current Best Deal and Price Cap Context
The cheapest available tariff is E.ON Next's Fixed 15 m v7 tariff, which has an average annual cost of £1,533. This represents a saving of £225 compared to the current price cap and is £108 cheaper than the new cap set to take effect in April. However, this deal is exclusively available to members of MoneySuperMarket's SuperSaveClub.
Currently, the price cap is over £500 higher than when it was first introduced in 2019. Research from MoneySuperMarket reveals that nearly half (49%) of households have rationed their energy usage in the past 12 months due to cost pressures.
Expert Advice and Future Predictions
MoneySuperMarket is urging households to consider fixing now to lock in a below-price-cap deal and protect against potential future price rises later this year. Laura Hinton from MoneySuperMarket Energy explained that while the energy price cap is decreasing from next month, this adjustment is largely due to changes in green levies rather than reductions in wholesale energy costs themselves.
"The market was initially predicting energy costs would remain relatively stable before slightly rising towards the end of the year," Hinton noted. "Instead, recent developments in the Middle East have pushed wholesale gas prices to a 12-month high, up 13% compared with 2025 levels."
She added that uncertainty has led to below-cap fixed deals being withdrawn, and while the April price cap adjustment will provide temporary protection, energy price rises are now more likely later in the year. Hinton recommends switching and fixing now as the best way for consumers to safeguard against future hikes and beat the price cap.
