Martin Lewis urges households to switch energy bills NOW as wholesale prices hit three-year high

MARTIN Lewis has urged people to save money by switching energy providers before prices go up.

The wholesale cost of energy has hit its highest in three years, prompting Mr Lewis to brand it an energy price “crisis”.

1

These rates are what energy companies pay, and when they go up the costs are often passed on to customers pushing up energy bills.

Mr Lewis said in his latest Money Saving Expert newsletter: “A fortnight ago we told you wholesale rates – those energy firms pay – were at a three-year high.

“They dipped a smidgeon after that, but they’ve risen again. Everyone should check if you can save now.”

Switching energy companies to get a cheaper tariff can save Brits £100s of pounds a year.

It comes a week after Bulb warned customers that energy prices would rise for a second time this year.

Mr Lewis said the rise would mean that Bulb customers – except for those with prepayment metres – will be paying almost as much as the energy price cap.

The cap is currently set at £1,138 by the energy regulator Ofgem.

Energy companies can’t charge more than this each year for “typical” bills based on standard default tariffs for gas and electric.

The price cap is set twice a year in April and October and is based on the previous six months, so a rise in wholesale energy prices now can push it up in future.

The price cap last went up by £96 in April hitting 15 million customers.

Mr Lewis said the latest spike in prices happening now could push up this price cap by between £50 and £100 in October.

He said: “All this means, while we’re heading to summer, for safety, check now if you risk overpaying.”

But, he warned switchers who are on a standard tariff with big energy firms that the prices they are looking to switch to won’t include the potential rise in October.

If energy prices fall between now and then, customers can switch again to take advantage of any fall in price Mr Lewis added, because “many of the top deals below don’t have early exit penalties”.

But anyone already on a cheap fixed tariff should stick with it in most cases, he said – unless it’s very close to the end.

Mr Lewis said: “Prices have gone up so much, the benefit of keeping your likely much lower rate is likely to be substantial.

“Unless prices continue to rise at unprecedented rates, that should outweigh locking in a new deal now.

“Yet if you’re in the last 49 days of your fix, when you can leave exit-penalty free, it is worth grabbing a new tariff now for safety – a switchover usually takes 17 days, so include that and you’re almost done anyway.”

CLOSING TIME

Which M&S stores are closing and how many job losses will there be?

CLOSING TIME

M&S to close 30 more stores after pandemic hits clothing and home sales

BARROW BURIAL

Fred Flintstone phenomenon sees people get buried like Stone Age ancestors

NOT SO SWEET

Aldi’s huge pricing error for mini sponge tarts leaves shoppers in hysterics

SALE ON

B&M has launched 10% off furniture sale and prices start from £36

LOAN MOAN

Court rejects Amigo Loans rescue plan risking customers’ compensation payouts

Brits are wasting hundreds of millions of pounds by leaving appliances switched on overnight – here’s how to cut costs.

Thousands of SSE customers woke up to “frightening” energy bills of up to £42,000 after a smart meter bill blunder.

Try our 10-minute energy switch challenge to cut your bill by up to £250.

This post first appeared on thesun.co.uk