MARTIN Lewis explained whether you should fix your electricity and gas bills as millions face higher energy prices.
Experts have warned that energy bill could increase by 51% in April at a cost of up to £600.
The budget increase has affected many households because Wholesale gas prices have skyrocketed this winter.
ONE hat price set by the energy regulator Ofgem to limit the average charge rates for gas and electricity.
The current price cap of £1,277 is reviewed twice a year and the next hike will come in April.
Fixed deals used to be cheaper than the price cap, but are now more expensive, with the average now being £2,391.
With an expected increase of 51 per cent, that means regular bills below the limit could rise by as much as £1,925 a year from April 1.
The money-savings expert said: “After cracking the numbers, the majority is still ‘no’, but for the first time in months, the repair may be worth it for a few.”
“If you’re offered a fix that’s not 40% more expensive than your current rate cap, it’s worth considering – especially if you value budget certainty”
Most of the fixed deals available today are 56% above the limit, so the fix is unlikely to be worth it, unless you have very high or low usage, he explains.
But some of the deals offered to existing energy companies’ customers may be better than those available to everyone.
“If you’re offered it, do the numbers to see what the percentage increase is,” says Martin.
However, there is a risk that if you fix it now and the price drops, you could get caught up in a higher priced trade.
On the other hand, if the price goes up, you’ve locked in a cheaper price.
If in doubt, stick to
It’s a complicated situation, Martin admits, and energy customers can be confused.
In a nutshell, he said: “It doesn’t seem like most people should do anything (not sure, I don’t have a crystal ball), seems like there are only a handful of edge cases so looking into fixing it now now.
“So if in doubt, just rely on the cheapest price right now – that’s the limit. And simply, 40% is my best guess, not sure.”
Martin also explains how to check out his ITV show The Martin Lewis Money Show, which you can watch below.
The 40% figure is based on certain assumptions, like the calculations for calculating the limit stay the same.
The government or Ofgem can still make changes to help people who are struggling with bills.
Martin has called for the government to act before the bill rises April 1.
The government has ruled out the removal VAT on energy bills can save £100 a year.
But people in the coldest parts of the UK could get extra help with bills, according to the plan The report is being reviewed by the Treasury.
The government has Cold weather payment the scheme pays some claimants £25 for every seven-day period in which the temperature falls below freezing.
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https://www.thesun.co.uk/money/17296180/martin-lewis-explains-fix-energy-bills-before-rise-price-cap/ Martin Lewis explains whether you should fix your energy bills now before raising £600