Brits are being urged to review their energy provider as soon as possible to check if there’s any way they can avoid a costly 10 percent hike in bills this October. According to Money Saving Expert (MSE), founded by Martin Lewis, some companies are offering a much lower rate than others – but you need to act fast.
Regulator Ofgem has warned that the energy price cap, which controls what most UK households pay for energy, is set to rise by an average of 10 percent on October 1.
But if you are able to shop around for different providers now you may be able to avoid this increase, with some places offering fixed-year rates for just three percent more than the current cap. This makes them six percent cheaper than what most people will be paying come October.
In an update MSE said: “Today’s cheapest standalone one-year FIX is 6 percent cheaper than the 1 October price cap. Sounds good, doesn’t it?
“You can lock in a rate for a year, at far below the new price. And if predictions from analysts at EDF and Cornwall Insight come true (and there is some crystal-ball-gazing), if you stick on the price cap, you’ll pay a whopping 11 percent more over the next year than you do now.
“Yet it’s important to understand that six percent cheaper than the 1 Oct cap is still three percent more than the current cap, so for the next month you’ll pay more.”
However, MSE warned you will need to make the change sooner rather than later.
“Many cheap fixes are disappearing, so waiting may mean you lock in at a higher rate,” MSE said. “Of course, if world energy rates drop, prices could be cheaper by then, but there’s no way of knowing.
“Plus, in competition terms, firms know that once October hits, more expensive fixes will look relatively better compared with the new higher price cap. So our best guess is if you’re doing this for peace of mind, sooner is likely safer.”
According to MSE the current cheapest standalone fixes that are accepting new and existing customers are:
- Outfox the Market – six percent below Oct cap on average (three percent more than current cap)
- EDF Essentials – four percent below Oct cap on average (five percent more than current cap)
- Ovo Energy – three percent below Oct cap on average (six percent more than current cap)
- E.on – three percent below Oct cap on average (six percent more than current cap).
To find out more and compare different energy rates you can join Money Saving Expert’s cheap energy club here.