Consumer finance expert Martin Lewis has advised millions of UK households to consider switching to a fixed-rate energy tariff before the Energy Price Cap rises by 13% in July. Writing for MoneySavingExpert, Lewis explained that the increase is driven by higher wholesale energy costs, which are only now being reflected in the cap.
The price cap rise will primarily affect customers on standard variable tariffs, with gas unit rates increasing significantly more than electricity rates. Lewis noted that those on fixed tariffs will not see a rise, and urged consumers on the cap to compare fixed-rate deals, some of which are currently up to 4% below the cap.
“By locking in a fixed rate below the current cap, you start saving straight away, and from July the fix will be 15% cheaper than the cap,” Lewis said. He added that the cap is predicted to rise further in October, making fixing a “risk-averse bet” for most households.
At the time of writing, several fixed tariffs were available below the cap level, though many require Direct Debit payment and may include exit fees. Lewis cautioned that households already on a fixed tariff should check if switching early is worthwhile, especially if exit fees apply.
Analysts forecast the October cap could rise by a further 2% to 3% if wholesale prices remain high. Lewis encouraged consumers to compare tariffs carefully and seek support from their supplier if affordability becomes an issue, while also recommending energy-saving measures and hardship schemes.
