Households have been told they can make big savings on their energy bills by making a simple change. People could cut bills by up to £120 a year by switching to a fixed tariff.
It comes after the Energy Price Cap, which determines charges, went up in January and are set to rise again in April, bringing more pain for hard-up households. Experts say households should consider fixes with bills expected to remain high all this year, meaning they won’t lose out.
Martin Lewis said families could get cheaper bills for 16 months. He said: “The Price Cap isn’t a total cap on what you pay, it’s a limit on the daily charge and unit cost of energy, so use more, pay more. 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.
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“Unsure if you’re on a Price Capped tariff? You likely are, as eight in 10 homes are, everyone other than those already fixed or who’ve actively chosen a special deal. Move to the cheapest fix and within five working days you’ll be paying typically 7% less than what those on price capped tariffs pay. 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.”
Martin also alerted customers to a special deal with Eon Next. He explained: “We’ve blagged an Eon Next deal via our Cheap Energy Club comparison, undercutting every other cheap fix, and it protects the rate for 16 months rather than 12. As with all tariffs, the price varies with use and region (your exact rates are in the comparison), but it’s on average 7% cheaper than the current Price Cap, so it’s currently a £120/yr saving for someone on ‘typical use’ (more if you use more).
“If the Price Cap rises as currently predicted, the real saving would be even bigger. It’s only available via us and direct at Eon Next. Yet our Energy Club is the cheaper route as new and existing Eon Next customers get an extra £10 bill credit and £20 MSE cashback.”