British Gas customers and other energy firm customers must act (Image: Getty)
Customers of every major energy firm are being warned to take action today (Wednesday April 15) after the latest gas and electricity price forecasts.
Experts are warning UK households to take action to get off the price cap as soon as possible as the war in Iran threatens to send prices surging.
The price cap is the default price level that households pay for gas and electricity and is set by regulator Ofgem.
Intended as a backstop to stop energy firms overcharging customers who didn’t fix their bills, the cap is usually more expensive than fixed deals, which are offered by firms to lure customers away from rivals.
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However, with the war in Iran pushing up electricity and gas prices in future, cheap deals are rapidly disappearing and the next price cap is expected to increase by as much as 14% from July.
Money expert Martin Lewis warned households to take action now. He said: “GET OFF THE PRICE CAP IF YOU CAN. DON’T IGNORE THIS (unsure if you’re on the Cap? You likely are!)
“There’s a window of opportunity to lock in prices below the current Cap to avoid the huge hike coming in July.”
Martin added via MSE: “The cost of fixing has dropped since the Middle East ceasefire announcement, but that may start to unravel, so the window of opportunity may close. Act NOW and you can lock in a fixed rate below the new lower April Price Cap, which MOST of you are on (even if you don’t know it).
“This is crucial if you want certainty your rate can’t rise, as the Cap is predicted to jump 14% on 1 July.
“Whether you can get a fix, and at what price, depends on your region, use & payment method, so do a full market comparison asap. You’re looking for one that saves you even a small amount over the current Cap, as far bigger savings will come from July.”
Household energy prices fell by 7% from April 1 in a “short-lived respite” for households already braced for a predicted 18% hike from July.
Ofgem’s price cap dropped from £1,758 to £1,641 – a reduction of £117 or around £10 a month for the average household using both electricity and gas.
This is an 11% fall year on year, but still £600 more than bills were in the winter of 2020 to 2021.
The reduction is lower than the average £150 cut to bills pledged by the Chancellor in November, when she moved 75% of the cost of the renewables obligation from household bills onto general taxation and scrapped the energy company obligation (Eco) scheme.
And it comes amid increasing concern about the amount energy bills could rise by from July as a result of the Middle East conflict, with latest predictions from Cornwall Insight suggesting this could be 14%.
