Martin Lewis issues 'fix now' warning after Ofgem energy price cap rise

Martin Lewis has issued a “fix now” warning after energy prices rose for millions of households this week.

The Ofgem price cap has increased from £1,568 a year to £1,717 - a rise of around 10% - for the typical household paying by direct debit. Around 27 million households are covered by the Ofgem price cap. You’ll be on the price cap if you’re on a standard variable tariff (default tariff) - so if you're not fixed into an energy deal.

But in the latest MoneySavingExpert.com (MSE) weekly email, Martin has warned that now is the time to compare prices and consider fixing. The MSE founder explained how the best fixes are even slightly cheaper than the previous July price cap. He said: "You can lock in for a year and you won't face the 10% rise. This is the MAIN OPTION for most people right now."

Keep in mind that if you lock into a new energy deal, what you're fixing is the unit rates you pay for gas and electricity - so if you use more energy, you'll pay more, or use less, and you'll pay less. Martin explained: "Exact prices depend on where you live and what you use, so go via our Cheap Energy Club comparison to find your bespoke cheapest (it'll also have the latest tariffs, in case things have changed by the time you read this)."

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MSE has flagged the cheapest energy fixes - the top one of which, the Outfox the Market Outfox the Price Cap (Oct 24) Fix'd Dual v2.0, is 9.4% cheaper on average than the October price cap. The next two cheapest on the MSE list are the EDF Essentials 1yr Oct25v3 and the British Gas Fixed Tariff 12M v8, which are both 8.9% cheaper.

The Octopus 12M Fixed October 2024 v1 and E.on Next Fixed 12M v28 are 8.8% less than the October price cap, while the Ovo 1 Year Fix & 1 Year Loyalty Fix is 8.7% less. Martin said: "It's predicted that over the next year you'll pay roughly 1% less than the current price cap... so all the fixes above have a lot of wriggle room for things to change and them still to be cheaper than staying on the cap."

Another option flagged by MSE is a discounted price cap tracker tariff, which are variable deals that move in line with the Ofgem price cap. The EDF Ensure 1yr tracker offers £50 cheaper standing charges compared to the price cap, which MSE says makes it a good deal for low energy users. The E.on Next Pledge 1yr tracker comes with unit rates that are about 3% under the price cap for 12 months.

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