Money Saving Expert, founded by Martin Lewis, has warned consumers about an upcoming rise in energy prices, urging them to take action now to save potentially hundreds of pounds on their gas and electricity bills. According to a recent newsletter, more than 80% of households in Wales, England and Scotland are currently overpaying for their energy due to being on a price-capped tariff. Lewis’ company is offering an exclusive tariff until a specific date, described as the “cheapest fix possible,” which could result in an average saving of 7% compared to the price cap. This exclusive offer also locks in the rate for the next 16 months, shielding consumers from anticipated price cap increases.
The Money Saving Expert (MSE) newsletter indicates that individuals on specific tariffs like British Gas Standard Variable, EDF Standard (Variable), E.on Next, Octopus Flexible, Ovo Simpler Energy, and Scottish Power Standard are likely paying more than necessary and should consider switching. The energy price cap, which applies to 26 million households in the UK, is set by the energy regulator Ofgem every three months. It determines the maximum cost per unit of energy for a typical direct debit paying household on a standard or default tariff. From January 1 to March 31, 2025, gas prices are capped at 6.34p per kilowatt-hour (kWh) and electricity at 24.86p per kWh.
The MSE newsletter advises consumers to take action by switching to a cheaper fixed tariff as a proactive measure. By making the switch, consumers can start paying less than the price cap within five working days and secure a locked-in rate, providing peace of mind against future price variations. It highlights an exclusive tariff offered through E.on Next, which is 7% less expensive than the current price cap on average, with potential additional savings if the cap rises. New and existing E.on Next customers might qualify for the tariff, along with an extra £10 bill credit and £20 MSE cashback.
The MSE newsletter postulates that the forthcoming energy price cap rise may exacerbate costs for consumers, making prompt action beneficial. By seizing the opportunity to switch to the exclusive E.on Next MSE Cheap Energy Club tariff before the given deadline, consumers can potentially shield themselves from anticipated increases. The extended tariff period of 16 months offers additional security compared to the standard 12-month fixed tariffs typically available in the market.
Consumers are encouraged to avoid overpaying for their gas and electricity by acting swiftly and capitalising on the exclusive tariff provided by MSE in partnership with E.on Next. By making the switch before the looming price cap rise, individuals can potentially secure savings and protect themselves from future cost escalations. Additionally, the exclusive tariff aims to offer customers peace of mind and financial relief amidst the uncertain energy price landscape.
As consumers face the prospect of rising energy costs, the advice from Money Saving Expert provides a strategic and timely solution to mitigate financial burdens. By taking advantage of the exclusive tariff on offer, households can navigate the shifting energy market with greater control and savings potential. The proactive approach advocated by MSE underscores the importance of informed decision-making to safeguard personal finances and optimise utility expenses in the face of market fluctuations.