Martin Lewis has issued a warning and advisory to UK consumers as energy bill prices are about to rise.
NS money saving specialist The founder said “we’ve never seen anything like this happening right now”.
in one emergency video, Martin had some advice for customers who are about to be on the receiving end of a cheap tariff.
He said the only option is to “limit the damage” and try to stop the huge price hike.
It comes as small energy companies are on the verge of collapse amid soaring bulk gas prices.
Bulb, which has around 1.7 million customers in the UK, is scrambling to find new funding.
Meanwhile, at least four other UK companies could fail in the coming week.
Business Secretary Quasi Quarteng has said the government “does not expect a supply emergency this winter” amid a growing energy crisis.
“There is no question of the light going out,” said Mr. Quarteng.
However, consumers will likely be paying much more for energy.
Martin said customers should take energy price caps into account when thinking about their next move.
For someone with normal energy usage, this would jump 12% to £1,277 on 1 October.
The range is based on wholesale prices for the six months to August 1 – when prices were rising but not as fast now.
Based on the current rate of price increase, when the energy price cap moves again on 1 April next year it could rise to £1,500 or more, Martin said.
“That time lapse is going to be very positive right now … but going to be really negative in the future if prices drop again by next April,” he said.
If your cheap fixed rate energy tariff is about to come and go, Martin offers advice on what to do next.
stick with the standard variable price
Once your fixed rate period expires, your provider will automatically put you at the standard variable price.
Often it’s poor value for money, Offgame said, adding that they are usually the most expensive tariffs on the market.
However, in the current environment there are “very, very low tariffs” that would be cheaper than this, Martin said.
In the video he said: “Go over that and cross your fingers that things will be cheaper by next April and you can move on.”
Find the cheapest fix deal you can
The other option is to lock yourself into the cheapest one- or two-year fixed deal you can find—under the October 1 price range.
But if you choose this option you will have to move fast, as the deals probably won’t last long.
And keep in mind that there will be a small fee for skipping tariffs if you change your mind later.
Finding a cheap deal will be even harder than usual because there are not many comparison sites running.
MoneySavingExpert has a guide for finding it Get the best deal possible under the current circumstances.
If you’re concerned about paying your energy bills, there are steps you can take.
The Warm Homes Discount is a one-time payment of £140 that is placed to heat your home in winter.
You should also speak directly to your energy provider if you think you will have difficulty paying.
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