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Money expert Martin Lewis has urged people to get a cheap energy fix before prices go up again in April and July – but has cautioned against one type of tariff.
Speaking on the latest episode of The Martin Lewis Podcast on BBC Sounds, Spotify and Apple Music, Martin told co-host Adrian Chiles how one type of deal which he used to recommend is no longer the best option as prices start to rise again.
A tracker from E.On which locks your price at £50 cheaper than the price cap, or 3%, and moves up and down with the price cap, was a good option when it first came out.
But right now, there are other tariffs which will save you more than 3%/£50, and those tariffs will also stay fixed where they are rather than move up when the price cap increases.
And with bills forecast to go up in April, July and October this year, having your tariff fixed is better than tracking the price cap, even if it tracks slightly below.
Martin said: “Your question was, effectively, should I go for a tracker tariff, which is £50 cheaper always than the price cap, or should I go for a fix?
“Well, 3% cheaper than the price cap, you can fix at that or lower anyway and the price cap is gonna go up.
“I would not be doing the tracker right now.
“The only tracker I might look at is if I were a very low user, under around £135 a month, if you’re using under around £135 a month, EDF has a tracker that discounts the standing charge by £100.
“So for low users that’s very good so I’d look at that one but for everyone else, I’d either be looking at fixing and get yourself off the price cap – or as I have renamed it, the pants cap, it’s a pants cap it’s not a good price, you shouldn’t be on the pants cap – get yourself off the price cap by doing a comparison or if you’re more sophisticated you could look at the Octopus time of use tariffs or the tomato time of use tariffs.
“And there are some more sophisticated tariffs out there. But just go and get the cheapest fix you can get, with a company you trust.”
