The Money Saving Expert Founder had predicted a rise of between five and seven per cent and has been urging viewers to look at switching on his TV show.
In a tweet this morning, he said: “THE PRICE CAP IS A PANTS CAP GET OFF IT IF YOU CAN – FIX NOW IF YOU HAVEN’T ALREADY.
“The cheapest year-long standalone fixes right now are about 4% LESS than the current Cap, never mind once it rises in April, so if you get a good fix now you lock in at a cheaper rate for a year, get price certainty, save instantly and save relatively more once we get to April.”
What is the best energy price fix to beat the cap?
He added that the cheapest fix depends on where you live and how much you use, so urged billpayers to do a comparison, but to wait until later today as more tariffs are being launched.
NEWS. ENERGY PRICE CAP TO RISE AGAIN, 6.4% ON 1 APRIL. This follows the 1% rise in Jan and 10% last Oct. Here’s my instant briefing (feel free to share) including WHAT TO DO. Lets start with the avg Direct Debit Cap…
ELEC
Standing charge 53.8p/day (from 60.97p) DOWN 11%
Unit…— Martin Lewis (@MartinSLewis) February 25, 2025
Looking further ahead, he added: “The current analysts’ predictions are once the price rises in April, it will stay at roughly that rate for the next year. Though the further out you go the more crystal ball gazing that is (and the chance of peace in Ukraine, the middle east, or US pumping out oil could see energy prices fall). Still the safe bet based on current predictions is to fix.”
The increase will raise the average bill for households in England, Scotland and Wales on a standard variable tariff from the current £1,738 a year to £1,849, followed a recent spike in wholesale prices.
The rise will equate to £111 for an average household per year, or around £9.25 a month, over the three-month period of the price cap.
This is 9.4% or £159 higher than this time last year but £531 or 22% lower than at the height of the energy crisis at the start of 2023.
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Best deal for those not fixing
He also looked at options for those who can’t or don’t want to fix: “Those with very low usage only (under say £80 a month) should also look at British Gas & EDFs special tracker deals which discount £50 off the annual standing charge.”
Warm Home Discount
There was some positive news, with an expansion of the £150 Warm Home Discount to 2.7m more low income households winter 2025/26.
Martin Lewis added: “It’ll be done by getting rid of the ‘high energy cost’ criteria for those on means tested benefits like Universal Credit (which helps working people and non working on low incomes). That’s good as it’s a terribly implemented system which left many, literally, unfairly out in the cold.”
On his ITV show tonight he will be putting questions to the Ofgem boss Jonathan Brearley, who has said of today’s moves: “We know that no price rise is ever welcome, and that the cost of energy remains a huge challenge for many households.”
What is the energy price cap?
The term is quite confusing and it’s important to note it’s not the maximum price you will pay – it’s an average. If you use more, you will pay more.
The cap was introduced on 1 January 2019 by regulator Ofgem, with the aim of preventing the millions of households on expensive variable tariffs from being ripped off.
But it only limits what you pay for each unit of gas and electricity that you use.
It’s based roughly on wholesale energy prices (those that firms pay) and applies only to providers’ standard and default tariffs, which the vast majority of households are now on.
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.
The energy price cap also sets a maximum daily standing charge.
