Customers at British Gas, Eon, EDF, Ovo and Octopus are being told to get a cheap fix before prices change on Monday, July 1.
Ofgem is cutting the price cap for millions of households on Monday, with average bills dropping 7 percent, or £122 for a typical household, down to £1,568 per year (although this is still higher than two years ago).
That means 85 percent of UK households will reap the benefit of the price cut on Monday when the Ofgem price cap automatically reduces prices for those on variable tariffs.
But, Martin Lewis warned that the best deals right now are actually cheaper than the price cap and could help you beat the 12 percent rise predicted to be coming in October which would add £188 back onto energy bills.
The price cap dropped by £138 in April, and another £122 is coming off bills in July, but the best fixes on the market right now will stop your bills going up during the October price cap, saving you £188 from beating that rise.
Taken together with the £138 bills reduced in April, that’s at least a £326 average saving and if you can get locked in at slightly under the July price cap rate before Sunday, you’ll save even more.
For example, right now the best deals are 7 percent lower than the April price cap, which means your total saving could be £306 before factoring in the April drop, for a £444 total saving this year if you can fix now.
There is no telling if the cheapest deals available today will still be on the market come Monday when prices change so the best time to act is now.
Because you won’t be able to change deals at the weekend, today is the best time to lock in a cheap deal before Monday morning.
Martin Lewis said: “If you look over the next year at the predicted price cap, and the price cap is what sets the rate for 90 percent of homes because 90 percent of people are on a standard tariff, you would look and say on average you will pay roughly 3 percent less than you do right now.
“Whereas the cheapest fix available right now is 9 percent cheaper.
“So stay on the price cap and you pay 3 percent less right now but go on the cheapest fix on the market, if you’re on direct debit, is 9 percent cheaper.
“So you can lock in right now and the probability if the prediction is correct is it will be cheaper than the price cap.”
