Martin Lewis is urging everyone to look at switching to cheaper energy tariffs, and look at the fixes currently available on the market - not staying on the energy price cap.

"Most homes are on an energy price capped tariff," he said, in his weekly newsletter. "The cap went up 10 per cent on 1 October, up another one per cent on 1 January and it's now predicted to go up three percent to five percent on 1 April. Yet act now and you save now, and can prevent future hikes."

He added more advise: "Most firms charge at the limit, and these limits are high now, meaning the price cap is a pants cap, as most can easily compare and switch to a cheaper deal."

"Move to the cheapest fix and within five working days you'll be paying typically seven less than what those on price capped tariffs pay," he explained.

"Plus, the rate is locked in so you get peace of mind that it won't change, whereas the price cap's predicted to rise further."

The truth is, no-one can tell you what the best deal is for your circumstances, or whether rates will rise or fall, but the best way to save is to keep on top of comparing rates and pick the best deal for you, every few months.

Sadly, there's no rewards for loyalty these days.

The current cap 

On 1 January 2025, the Energy Price Cap rose by 1% to £1,738 a year for a typical use household paying by Direct Debit - although it's the rates that are capped, so use more and you pay more.

The Price Cap is set differently for those that pay by monthly Direct Debit, those that pay quarterly or on the receipt of a bill, and for those that prepay for their energy:

If you pay by Direct Debit, from 1 January to 31 March 2025, the Price Cap for a typical household is £1,738 a year. 

Recommended Reading:

If you pay on receipt of a bill by cash, cheque or quarterly Direct Debit, the Price Cap is £1,851 a year, on typical use, from 1 January 2025.

How to switch to a fixed deal from the Energy Price Cap

To switch suppliers, follow these steps:

  • Go to a comparison site, or even compare the deals with your own provider. You might need some information - your address, current energy supplier and usage, how you pay and whether you want to compare dual-fuel, gas or electricity-only tariffs.
  • Look at the options. Make sure you compare all tariffs on the market to get the best deal and remember to factor in things like exit fees, tariff length and type.
  • Pick a new deal, or stay with your existing one if it's the best for you. You can switch online or over the phone. The new supplier will handle it all, so there's no need to tell your old supplier or awkward phone call. You just need to take a meter reading just before your switch completes.

Your supply wont be interrupted, it's just who you're paying that switches over.