Martin Lewis’ MSE says this cheap no risk fix will | European Markets

Households are urged to verify if they will cut back their vitality invoice by taking over a “no-risk” fixed-rate tariff. The vitality price cap – the restrict suppliers can charge per kWh – is set to rise by 6.4% on April 1, raising payments for 1000’s of households nonetheless on a variable tariff.

Nonetheless, there may be a solution to beat the price rise, in accordance with Martin Lewis’s Cash Saving Knowledgeable (MSE) crew, and that’s by means of switching to a fixed charge deal. The crew wrote of their latest publication of suggestions: “The Energy Price Cap, which two-thirds of homes in England, Scotland and Wales are on, moves every three months – and we know it’ll rise 6.4% in April. As the current cheapest fixes are 7% below today’s Price Cap, they’re massively cheaper than April’s price.”

Mounted offers shield shoppers from price hikes by locking in charges for twelve months or more. Nonetheless, some households have been hesitant to signal up, fearing they might miss out on falling wholesale vitality costs. Sometimes, leaving a fixed-rate tariff earlier than the contract ends comes with an exit payment per fuel.

Nonetheless, there may be an option to decide into a fixed-rate deal with no risk of paying more or incurring exit charges. Power giant EDF is at present offering a deal with no exit charges, priced 4.8% under the present cap and 10.5% decrease than April’s charges. If costs drop during the contract, households can exit the tariff penalty-free.

MSE wrote: “Analysts’ current predictions are the Cap will remain materially higher for the next 12 months. Yet, if there’s peace in Ukraine, prices could plummet. Some have said they’re not fixing due to this. If so, consider the no-risk fix.

“You’re always free to ditch a fix, though you sometimes need to pay early exit fees of £25 to £75 per fuel. Yet this cheap EDF no exit fee ‘Simply Fixed Direct’ tariff is 4.8% below the current Cap (10.5% below April’s), and if prices do fall, you can leave penalty-free whenever.”

Ben Gallizzi, vitality knowledgeable at Uswitch.com, additionally emphasised the advantages of choosing a fixed charge during the present period of risky costs.

He stated: “Now is the time to take action to avoid the energy price hikes in April. If you haven’t switched in over a year, you’re likely on a standard tariff and could be paying more than you need to.

“Running a quick comparison on Uswitch.com could help you find a better deal in minutes.”