Martin Lewis issues ‘urgent’ advice to beat more Middle East war energy price hikes

In his weekly newsletter, the Money Saving Expert (MSE) founder detailed how wholesale costs saw a ‘slight reprieve’ last week, following sharp increases due to conflict surrounding the Strait of Hormuz, which carries around 20% of the world’s oil and gas supplies.

According to the consumer finance guru however, ‘volatility is high’, and ‘the window of opportunity’ to lock in cheap rates could close at any time.

With this in mind, Martin has urged all households on their provider’s standard tariff across England, Scotland and Wales to ‘act now‘, and ‘get off the energy price cap while you can’.

Although there’s no way of knowing exactly what will happen to rates going forward, he recommends considering a fixed offer while they’re on the lower end — and at the very least, before the price cap jumps by a forecasted 14% on July 1.

Essentially, the April price cap was ‘based on a world before the Middle East conflict started’.

However, come the next announcement, this will be factored in, ‘which is why it is strongly predicted to rise’.

As such, locking in a fix ahead of time could potentially be ‘the safe option’.

‘Whether you can get a fix, and at what price, depends on your region, use and payment method, so do a full market comparison ASAP,’ the consumer guru explains.

When Martin says ‘cheaper’ though, remember you don’t need to hunt for the best offer ever — and you’re unlikely to find anything actually ‘cheap’ in the current climate.

Worried about fixing in case your provider goes bust?

‘That’s always a risk,’ writes Martin in an article on the MSE site.

As of yesterday evening, some companies still had deals available for up to 2.8% less than the current cap, which could work out over 15% less than what you’d get come July.

With the global situation changing rapidly, and providers pulling their best offers at a moment’s notice, it’s possible fixes ‘could be cheaper — or much more expensive’ depending on how long you wait.

Either way, Martin recommends thoroughly comparing your options before making a move, factoring in affordability, usage, early exit penalties and how risk-averse you are to dealing with fluctuations in your bills.

POLL

Are you planning to switch your energy supplier in light of potential future price hikes?

• Yes, I will explore switching as soon as possible.

• Maybe, I need to do more research first.

• No, I think I'll stick with my current provider.

Early exit fees can cost around £50 per fuel – so £100 in total.

But if you’re in the last 49 days of your contract, you won’t be charged.

‘And if you’ve not switched in a year, there’s a good chance you’re completely free to move.’
Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.