Martin Lewis, the Money Saving Expert, has issued a critical warning to anyone who recently fixed their energy deal. With the Ofgem price cap set to rise again in April, understanding your rights and options is essential.
Key Takeaways:
- 50-Day Rule:
- Energy suppliers cannot charge early exit fees if you leave a fixed tariff within the last 50 days of your contract.
- Strategic Switching:
- Mark your calendar 50 days before your fixed deal ends to compare prices and potentially switch to a cheaper tariff without penalties.
- If no cheaper deals are available, stay on your fixed tariff until the end.
- Ofgem Price Cap Increase:
- The Ofgem price cap will increase by 6.4% from April.
- This translates to an average annual increase of £111 for dual fuel households paying by direct debit, bringing the average bill to £1,849.
- Pre-payment meters will rise to £1,803, and payment on receipt of bill will rise to £1,969.
- Price Cap Misconception:
- The Ofgem price cap limits the unit price of gas and electricity, not the total bill amount.
- Your actual bill will depend on your energy consumption.
Martin Lewis’s Advice:
“A quick energy need to know if you’re on a fixed tariff or thinking of getting one. They cannot charge you early exit fees if you leave a fix within the last 50 days. So from day 49 onwards, no early exit penalties. You’re absolutely free to leave if you choose to. So it’s a very good idea to work out when your fix ends and put 50 days beforehand in your diary to do a comparison to see if you can then find anything cheaper. If you can, you’re free to switch and they can’t lock you in with penalties. If you can’t, stay where you are and milk it out till the last moment.”
What This Means for You:
- If you’ve recently fixed your energy deal, be aware of the 50-day rule to avoid exit fees.
- Compare energy prices regularly to ensure you’re getting the best deal.
- Understand that the Ofgem price cap doesn’t limit your total bill.
Energy bills are a concern for many people, and there are ways to see if you can get help.
- Call Free Heating Scheme for free on 0330 822 4157
- Complete our short eligibility checker to find out if you qualify for free help to reduce bills or improve the energy efficiency of your home.
Source: Information gathered from content published in the Manchester Evening News