‘Martin Lewis’ advice for people on energy price cap – it saved one fan £468’

Martin Lewis is urging action as millions of Brits brace for a winter of soaring energy bills. It comes after the Ofgem energy price cap jumped up by around 10% on October 1.

Typical households may see their electricity and gas costs go up to a staggering £1,717 per year, with the cap set in place until December 31. Now, TV journalist Mr Lewis and his team of financial gurus at MoneySavingExpert (MSE) are urging the public to take urgent action in a bid to lessen this blow. They claim their advice even saved one fan an impressive £468 per year – but acting fast is crucial.

In the latest MSE newsletter, Martin explained: “Last week, the Energy [Pants] Price Cap, which dictates the rate eight in 10 homes in Eng, Scot and Wales pay, rose by 10% – meaning most people will pay 10% more too. Yet, for now, the deals you can compare and switch to are far cheaper.”

Crucially, the energy price cap is the ‘maximum amount energy suppliers can charge you for each unit of energy and standing charge if you’re on a standard variable tariff’, according to Ofgem. The figure accounts for typical household energy use while also ensuring that ‘that prices for people on a standard variable tariff (default tariff) are fair and that they reflect the cost of energy’.

Despite this, Martin Lewis has branded it the ‘pants cap’, while stressing that Britain’s energy market is ‘broken’ in an interview with the BBC. According to The Mirror, he said: “What we have now is a time-lagged price cap, where the price cap is going up when though wholesale rates are coming down right now.

“The reason this is important is, while the price cap is time-lagged, the switchable deals, they are able to take advantage of the current short-term lower wholesale rates. It’s a pants cap – you shouldn’t be on it.”

To dodge the eye-watering prices, he has urged Brits to switch energy providers as soon as possible. This is what MSE reader Sharon did, saving her an impressive £468 per year.

The process starts with knowing whether your bills are affected by the default capped tariff at all, as it only affects households across England, Scotland and Wales that haven’t recently chosen to switch firm. The financial gurus suggest using their Cheap Energy Club comparison tool to figure this out, though you can ask your supplier too.

If you are among the unlucky ones affected by the price cap, it’s then worth searching around for cheaper deals.