Martin Lewis urges some households to fix energy bill deals NOW before price hikes

MARTIN Lewis has urged some households to fix their energy bill deals NOW ahead of eye-watering hikes expected.

The consumer guru explained why some customers should think about switching tariffs in the latest MoneySavingExpert newsletter.

He said the price cap is “likely to rise even more than we previously thought”, and said some may benefit by switching to a fixed deal – even though they are pricey.

The energy price cap limits how much customers on a variable dual-fuel rate can be charged by their supplier, and currently, it is reviewed twice a year.

It’s mainly based on the price of wholesale energy and supplier costs.

But those have soared in recent months, meaning households are facing huge gas and electricity bills.

Prices were rocketing since the end of last year, but has been fuelled by the Russia-Ukraine crisis.

Russia is one of the biggest producers of gas and oil, and concerns have been raised over whether supply could be affected.

It means Ofgem’s boss warned that the cap could soar from £1,971 to somewhere “in the region of £2,800” in October.

Should this hike take place, it could see millions of households pay a further £830 for their energy bills in the winter.

Martin said it means “some costly fixes look like they may now be winners”.

He said it could be worth considering switching even though there are no tariffs “meaningfully cheaper” than the current price cap.

But he said that some fixed deals now are cheaper than what the price cap is expected to be in October.

Based on current predictions for the October price cap, Martin said you’ll be paying 35% more over the next year than you do now – that includes higher usage estimates over the winter.

With this in mind, he said it’s “worth considering” switching to a fixed deal that is no more than 35% to 40% above your price-capped tariff – although he added this rule wasn’t an “exact science”.

However, he said this advice does not apply to those on prepay meters or households in Northern Ireland.

Make sure you read the terms and conditions of your fixed deal though – otherwise you could end up out of pocket.

Experts have warned households about a new “cheapest” energy deal launched by Utililty Warehouse that comes with a massive catch.

It’s offering a fixed deal of £2,250 for 12 months – lower than October’s price cap estimates – but you have to take out two other products to qualify.

And when suppliers do offer fixed deals, they are often part of flash sales.

These are snapped up in hours, meaning they’re hard to switch to.

Energy bill help if you’re struggling

There are schemes offered by suppliers, local councils, charities and the government that could also help.

If you’re struggling with energy costs or other bills there are plenty of organisations where you can seek advice for free, including:

•  – 0808 808 4000
•  – 0800 138 1111
•  – 0808 800 9060

You should speak to your energy supplier in the first instance as they have schemes in place to help with bills and arrears, including hardship funds and grants.

Your local council may also be able to help with cash and grants if you are struggling with bills through the Household Support Scheme

The winter fuel payment scheme, where those getting the state pension can get between £100 and £300 to offset the cost of keeping their homes warm.

Low income households can get £25 a week to help with energy bills during the winter thanks to the cold weather payment scheme too.

The warm home discount scheme means you can a £140 payment that goes toward your heating costs – but you need to act quick as this scheme has already closed at most energy suppliers.

Chancellor Rishi Sunak announced a £150 council tax discount for millions of Brits in an attempt to ease the cost of living crisis.