Martin Lewis, founder of the financial advice website Money Saving Expert, has indicated that it could be a good time for households to consider switching to a fixed-price energy tariff if they value certainty.
With Ofgem’s energy price cap due to drop in July by 7% to £1,568 per year for the average duel-fuel UK household, you may wonder if it’s worth waiting until then to fix your prices, but Lewis said this was irrelevant, saying:
“The rate you can fix at depends on how cheaply retail energy firms can buy energy at the time they offer the fix. We have no clue what that will be in July. It may be cheaper than now, it may be more expensive—it’s about world markets.”
He added that this meant that Ofgem’s price cap has almost no influence on the deals they offer, because that is based on historical wholesale prices. With Cornwall Insight predicting that the energy price cap could rise again by 12% in October, when we start to rely on our central heating again, there are potential savings to be had by switching to a fixed tariff now.
Even if you make savings by signing up to a competitive tariff, you can make further savings by ensuring your central heating is working optimally. Xgas can perform a boiler service in Chester and the surrounding area to ensure your boiler is working reliably and efficiently, as well as replace an old inefficient boiler with a modern condensing boiler.
