Octopus, OVO, Outfox, E.on customers given Martin | European Markets

Martin Lewis, the personal finance guru, has issued a 50-day warning to anybody on a fixed charge power deal. In an ‘pressing’ post, Mr Lewis knowledgeable prospects with fixed tariffs from suppliers corresponding to E.on, OVO, Octopus, British Fuel, NPower, Outfox the Market and SSE that they may break away from their offers if they want – at a particular time.

In a video post, he revealed a little-known trick to keep away from exit charges whereas nonetheless attempting to find the best market offers. He said: “A quick energy need to know if you’re on a fixed tariff or thinking of getting one.

“They can’t charge you early exit charges if you happen to depart a repair within the final 50 days. So from day 49 onwards, no early exit penalties. You are completely. Free to depart if you happen to select to. So it is a superb concept to work out when your repair ends and put 50 days beforehand in your diary to do a comparability to see if you happen to can then discover something cheaper. In the event you can, you are free to change they usually cannot lock you in with penalties. If you cannot, keep the place you might be and milk it out until the final second.”

Households are bracing for a 6.4% surge in their energy bills from April amid plans to extend a £150 discount to around three million more homes.

Ofgem announced the increase to the price cap, which will push 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, following a recent surge in wholesale prices.

The increase will amount to an additional £111 per year for an average household, or approximately £9.25 a month, over the three-month duration of the price cap. This is 9.4% or £159 higher than this time last year but £531 or 22% lower than at the peak of the energy crisis at the beginning of 2023.

Discussing the price cap on This Morning last week and the potential for further increases, Mr Lewis stated: “We talked final week about [how] the power price cap goes up 6.4% on the first of April. Many people suppose that fixed charges go up as effectively. They do not.

“Just [to] be slightly complicated… The energy price cap is set on past wholesale rates. The April energy price cap is set on wholesale rates between the middle of November and the middle of February. They went up so it’s gone up.

“What the speed you may repair at relies on the speed that power suppliers can at present buy in power for the subsequent 12 months. Now that does’ t transfer in sync with the price cap.

“I can’t tell you what the situation may be in May. Look, you know, if there is peace in Ukraine and Russian gas supplies are turned back on, energy prices will be a lot lower then. You will be able to fix at a much lower price than it is now. If the opposite and it looks like we are going to continue to be entrenched in that Ukraine situation, then energy prices – or Russian supply isn’t back on – energy prices will be higher.

“So I cant inform you what the state of affairs might be in Could as a result of it is merely an unknowable. However I can say the chances are, proper now, I’d suspect your repair could be very low-cost so that you in all probability need to keep it working as long as you presumably can.”