Martin Lewis explains how to save on energy bills with a flat rate – but it’s a risk

0

Martin Lewis says there is a way for some people to save on their energy bills with a flat rate tariff, but the founder of Money Saving Expert has sent out a warning that it could be a bit risky

Video loading

Video unavailable

Martin Lewis advises sticking to a fixed energy tariff

Martin Lewis explained how you could save money on energy bills with a flat rate – but warned it was a risk.

The Money Saving Expert star was answering questions about energy bills on ITV’s This Morning today, which was hosted by Phillip Schofield and Holly Willoughby, when Lynn called into the show to ask Martin if she should opt for a variable rate or a fixed rate in the coming month in the context of the announcement of an increase in the energy price ceiling.

“I have just received details of my new rate and if I repair as I normally do the price will be reduced from £83 per month to £189 per month. I have the choice of going variable this cost will be £ 102, but does variable mean it can change from month to month?” she explained.







Martin Lewis warned his suggestion could be a risk
(

Picture:

ITV)


Martin then answered his question, explaining to the viewers the energy price caps and the differences between tariffs.

“Let me walk you and everyone else through this, this is a big question I get so I’ll try to take it slow. Now you’ve heard it before, there’s no actual price cap, but I’m going to use the numbers for someone who’s in normal use now,” he said.

“The current price cap until the end of this month is £1270. From April 1 it increases by 54% to £1970, a huge increase that everyone will face. Your variable number I guess, is for now and will increase another 50% and therefore bring you to £150 a month.The big question is what will happen in October.







Martin appeared on This Morning today
(

Picture:

ITV)


He added: “The October price cap is based on the wholesale rates that these energy companies pay over six months.

“We’re a month into this six months now so there’s a lot of crystal balls watching right now and I can’t promise that my answer that I’m going to give you now is correct, it’s just my best guess. But based on where we are right now, after the horrible things that happened in Ukraine, which means wholesale rates have skyrocketed. It seems that in October, in addition to the 54% rise in April, we’ll see another rise of around 45-50%, taking a typical energy bill at £2,900 a year.”

However, Martin warned it was a risk – but there was a way to save money on your energy bills.







Energy bills are expected to rise
(

Picture:

Getty Images/iStockphoto)


“But if you look at it just on that basis, and it’s only a month into the sixth month assessment period, it could get worse and it could get better. But on that basis right now , if you can find a fixed deal for a year or more that does not exceed the April price cap by more than 25%, then I would consider fixing if you want price certainty,” he said. added.

“I can’t promise this will be the best result. Otherwise I will stay where you are and maintain the current price cap.”

However, he cautioned that most companies were unable to offer this through energy comparison sites and that you usually had to rely on your energy provider to offer you a special rate as an existing customer. .

Read more

Read more

Share.

Comments are closed.