Martin Lewis reveals whether you need to fix your energy bill now after record price cap

MARTIN Lewis has revealed whether consumers should fix their energy deal now ahead of a record £693 rise in April.

The MoneySavingExpert founder said there are no cheaper fixed deals currently on the market – even if the price cap soars again in October.

The energy price cap, which comes into effect on April 1, will take the average household bill to £1,971 a year.

The number of households on standard variable tariffs, protected by the price cap, has soared from 15million as energy suppliers have gone bust during the crisis.

Fixed deals used to be cheaper but most have been pulled from the market or soared in priced as suppliers are struggling with rocketing wholesale energy costs.

Martin said the cheapest fix on the market at the moment is 68% more than the current energy price cap, which is set at £1,277, a year.

The cap will jump by 54% from April 1 and the best fixed tariff available at the moment will still be more expensive than the new, higher level.

That means most consumers should stay on their supplier’s standard variable tarriff, which is protected by the price cap.

He predicted that the energy price cap could surge by 20% when it is reviewed again in October.

“Now of course anything can happen, but there ain’t no market fix that you should be going for right now,” he said on ITV’s Martin Lewis Money Show last night.

“Maybe some existing customers in certain circumstances with high or low use might find one…but the big message for most people is do nothing, stick on the price cap, don’t fix.”

If you don’t think the price cap will rise again, you would need to find a deal that’s no more than 44% expensive than the current cap.

But if you do expect it to rise in October – as experts do – you should find a fix no more than 59% more than the current price cap, Martin said.

Chancellor Rishi Sunak yesterday outlined a package of support for those affected by the price hike and announced the poorest Brits will get an extra £350 to help them through the energy bills crisis.