In a post written ahead of the Ofgem announcement today, Martin Lewis issued advice to households as energy bills are set to go up again this winter
Martin Lewis has urged millions of UK households to consider fixing into an energy deal as Ofgem announces its price cap will rise again this winter.
The price cap is rising by 2% from this October, so for every £100 you spend on gas and electricity, your bill will rise to £102. The average dual fuel household paying by direct debit will see their annual energy bill rise from £1,720 to £1,755.
Most analysts had expected the Ofgem price cap would rise by around 1%, so the increase is bigger than expected. In a post written ahead of the Ofgem announcement today, Martin Lewis urged households to start comparing the cheapest energy deals now.
He said: “It’s easy to compare to the cheapest fixed deals which are: Nearly 15% less (c. £250/yr cheaper on a typical bill) and have guaranteed rates, so you know they won’t rise for at least a year.
“That means switch to a fix and your energy use immediately costs less, and will continue to do so until at the very least the 31 December.
“Yet the extremely strong likelihood is you’ll continue to save substantially after that too. Analysts’ current predictions are that the Cap will drop slightly in January (down 2% ish) then a rise again in April (up 5% ish).
“Though this is far more crystal ball gazing than the October prediction. As your cheapest fix depends on your location, usage, payment type (sadly no fixes are available for non-smart prepay tariffs) use our MSE whole-of-market ‘ Cheap Energy Club ‘ to compare and find yours.”
MoneySavingExpert.com has rounded up the current top energy deals, the savings of which are compared against the current July price cap.
The consumer website lists Outfox Energy as one of the cheapest deals, with its Fix’d Dual Aug25 12M v4.0 tariff working out at 14.8% less than the July price cap.
Fuse Energy is 12.7% less than the current price cap with its August 2025 Fixed (15m) V2 tariff, while the Ecotricity EcoFixed – 1 Year Green Tariff July 25 V6 works out 10.5% less.
If you are considering a new energy fix, you should check if there are any exit fees with your current supplier. It is important to remember that the Ofgem price cap does not actually set a limit on how much you can pay for energy.
Ofgem sets the maximum you can be charged for unit rates of gas and electricity, plus your standing charges. This means your bill can be higher or lower than the main price cap figure.
This main price cap figure represents what the average billpayer can expect to pay for energy over a year. Ofgem says the typical home uses 2,700 kWh of electricity and 11,500 kWh of gas over 12 months.