Thursday, February 2

Martin Lewis: Energy price cap to rise by 51% on 1 April – should you fix now?

THE BIG PROBLEM: No open market tariffs are that cheap, though some existing customer deals are close

The market’s cheapest fix right now is an average 56% more than the cap – though some with very low or high usage may find it cheaper (do a cheap fix comparison to see). At that rate, fixing’s unlikely to be worth it.

A few existing customer deals (especially from Scottish Power and Octopus) may get closer, so if you’re offered one, do the numbers to see what % the increase is. Though as in-house switches happen quicker, you’ll lose more cheap rate time.

Of course, fix now and if wholesale prices drop rapidly, so fixes get cheaper in future, you would’ve unnecessarily lost out on the current cheap cap rate (you could always fix again then, just paying early exit fees – trivial in the big picture right now). Then again, don’t fix now, and if prices rise, fixes could get even more expensive. This isn’t easy.