Martin Lewis urges consumers to switch before Ofgem lifts energy price cap
Ofgem will raise the energy price cap by 4% in October, increasing average household bills by about £60 a year, but the hike only affects standard-variable tariffs.
From 1 October, Ofgem will lift the energy price cap by 4%, raising the average yearly bill for households using both gas and electricity to £1,723 - an increase of roughly £60. The regulator says the move reflects higher wholesale costs driven by Middle East conflict and European heatwaves. Roughly 11 million homes on fixed-rate or special contracts, about 35% of the market, will not feel the change.
Martin Lewis, founder of Money Saving Expert, stresses that consumers on standard-variable tariffs can avoid the higher charge by switching to a fixed-price plan, which currently offers rates up to 8% below the new cap. He notes that a fixed deal locks unit rates and standing charges for its term, typically a year, and can provide immediate savings if the rate is lower than the current cap. Those who switch to a fixed tariff when the cap rises could see bills about 11% lower than they would have paid under the new cap.
