Martin Lewis warns ‘DON’T SWITCH NOW’ to energy customers
MARTIN Lewis has warned households not to switch energy providers amid rocketing costs.
The money saving guru to his followers yesterday: "DON'T SWITCH right now."
He sent out the urgent warning yesterday, which comes as a stark contract to his usual advice to shop around for the best deal.
But it's because energy firms have been slammed for ramping up household bills by as much as 80%.
Since August, wholesale gas prices have gone up a staggering 70%, and suppliers have no choice but to pass on the costs or face going bust.
Unfortunately the latter has been the case for as many as 10 firms who have collapsed in recent weeks as a result of rising gas prices.
But it's also meant households have been forcibly moved to new tariffs that are way dearer than what they were paying previously.
In the tweet, Martin outlined the average price of an annual fixed tariff a month ago compared to now, and how those costs align with the set price caps during those periods.
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On October 1 the new energy price cap, set annually by Ofgem, came into force, meaning a hike of £139 in bills for many households.
It’s designed to stop suppliers overcharging customers for their energy bills.
But the price cap rose from £1,138 a year to £1,277 from the date, which Martin addressed in his tweet.
Only a month ago providers could charge up to £1,138 for a standard variable tariff, though fixed rates can go beyond that.
With only a hike of £139 in the cap though, suppliers have tacked on almost another £600 to fixed tariffs in that space of time according to Martin's figures.
He said that just one month ago the cheapest fix was £1,177 for someone with typical energy use, and that's against the £1,138 a year price cap.
But now, a month later, the cheapest fix tariff is £1,700 a year against the £1,277 current price cap.
That's a hike of £523 that a number of households will have encountered in the space of just four weeks.
Experts at Energyhelpline confirmed that in fact the cheapest fixed deal a month ago was from the now bust Avro Energy at £1,087 for a 12 month fixed tariff.
The cheapest fixed deal today is from Zebra Energy £1,665 for a 24 month fixed tariff.
In the meantime, Martin called the difference "Astronomical" and "Shocking".
But he has remained certain that hard-done-by customers should not switch as you won't find a cheaper deal available.
It's thought that the default price cap will rise once again in April, so those who stick with their fixed rate now will end up paying a cheaper price once that rolls around.
It's predicted to go up to £1,660, but if suppliers continue to charge extortionately, households could be feeling even more of a pinch if they move about now.
But what CAN I do now?
Justina Miltienyte, energy policy expert at , said: “The best advice for most consumers right now is to hold tight.
“If you are already on a standard variable tariff, it is unlikely there will be a better value deal to switch to.
“If your fixed deal is coming to an end, it’s worth letting your deal roll onto your supplier’s capped standard variable rate.
“It is more important than ever to keep yourself informed about what is happening in the market so you can be sure you are paying the best possible price.
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“Signing up to alerts can help you keep up to date with any new deals.
“It is also important to keep an eye on how much energy you are using at home, and take any opportunity to keep costs down.”
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