Martin Lewis has issued an urgent warning to customers of major energy suppliers including Octopus Energy, British Gas, E.ON Next, OVO Energy, EDF Energy, and ScottishPower, advising them to switch tariffs immediately to avoid significant bill increases. The warning comes as households face rising energy costs, with the next price cap adjustment expected in July.
Speaking on ITV's This Morning, Lewis explained that many consumers are unaware they are on the default price cap tariff, which he described as a 'pants cap'. He urged those on standard variable tariffs to consider fixed deals, as current market rates are now cheaper than the cap. 'Right now, the cheapest fix is 6% less than the current price cap,' he said.
The energy price cap, set quarterly by Ofgem, limits unit rates and standing charges for default tariffs. While the cap dropped by 6.7% on April 1, Lewis warned that the July cap is predicted to rise by 12-14% due to higher wholesale prices during the Middle East conflict. He noted that fixed tariffs are based on current prices, not historical data, making them more favourable now.
Lewis advised consumers to use comparison websites that display all available tariffs, not just those with commercial incentives. He emphasised that the cheapest deals often lack referral fees, so users should tick 'show all tariffs' to see the full market. 'If you're on the price cap, get off the pants price cap,' he reiterated.
