Competitive fixed deals started returning to the energy market last year mean that 471,870 customers switched in April and May 2024, and 79 twelve-month fixed deals offered this time last year will finish by the end of May, with consumers automatically rolling onto their supplier’s standard tariff unless they take action now.
These standard tariffs are effectively set by the price cap, making them some of the most expensive on the market – the cap increases by 6.4%- the third rise in a row – on April 1 2025.
In a tweet at the time of the announcement, Martin Lewis said: “THE PRICE CAP IS A PANTS CAP GET OFF IT IF YOU CAN – FIX NOW IF YOU HAVEN’T ALREADY.”
Those customers whose deals are ending could avoid a spring ‘bill shock’ and save around £259 by switching to a new energy tariff
If all of those households signed up to the cheapest deal currently available, they would save around £108 million between them compared to what they would pay if they rolled onto a standard tariff.
What is the best energy price fix to beat the cap?
The cheapest fix depends on where you live and how much you use, so the best way to find the lowest price for you is to do a comparison.
Martin Lewis is very clear on this – get off the Energy Price Cap – or the ‘pants cap’, as he calls it.
He says to choose the best-fixed deal, customers should use a comparison site that takes in the whole market by default rather than cutting out some suppliers who do not pay to be listed.
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How can I switch my tariff and when am I best to start looking?
Households on fixed deals are free to switch 49 days before the tariff ends without paying any exit fees – a little-known hack that can let consumers jump to a cheaper deal earlier.
Uswitch.com is encouraging consumers to check when their ‘fixed deal ending’ window ends and switch as soon as possible.
Elise Melville, energy expert at Uswitch.com, says: “Households who signed up for a fixed energy tariff last spring should get a new deal as soon as possible, as they could save significant sums compared with a standard tariff.
“Those whose tariff started in April last year need to act now – as they can leave their current tariff up to 49 days before it ends without paying any exit fees.
“When wholesale energy prices rise, the cost of deals on the market usually increases at the same rate. But suppliers are currently fighting to win customers and this means big savings on offer.
“It’s unusual for such well-priced deals to be available, and we believe that households may have a relatively short window of opportunity to grab one before they disappear.
“If you’re on a standard tariff, now is the time to protect yourself from upcoming price rises. Run a comparison to see what deals are available to you.”
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 January 1 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.
