Martin Lewis urges urgent energy deal switch before price cap increase

In the UK, Martin Lewis has issued a strong recommendation urging British Gas customers and others to reconsider their energy deals ahead of a significant price cap increase starting from April 1. The energy price cap, set by Ofgem, will rise to £1,849—reflecting a 6.4 percent increase from the previous cap of £1,738, primarily driven by the fluctuating wholesale energy costs as well as distribution expenses. As the maximum amount energy suppliers can charge on standard variable tariffs, the impending cap rise could impact many households significantly. In light of these changes, Lewis advocates for fixed deals as a means to protect consumers from further fluctuations in energy costs. He identified a particularly advantageous offer from British Gas that allows customers to fix their energy prices at a level 13 percent lower than the expected new cap, which is set to expire at 5 PM on March 28. This deal stands out as one of the most competitive available, making it crucial for households looking to save on their energy bills. Lewis emphasizes that acting quickly is essential to benefit from this limited-time offer. Customers who may hesitate to commit to a fixed deal can consider options like EDF's fixed energy deal, which is 9.9 percent lower than the anticipated price cap increase and comes without early exit fees. Lewis criticized the current price cap mechanism, calling it ineffective and suggesting that it should be replaced with a social tariff that guarantees affordable energy for vulnerable households unable to actively engage in the competitive market. Overall, Martin Lewis's advice serves as an urgent warning to energy consumers to promptly consider their options for energy tariffs before the anticipated increase in rates occurs, as the energy market may continue to see further price adjustments in the near future.