Hi,

This morning, energy regulator Ofgem announced the latest Energy Price Cap, which will rise by 13% in July.

It dictates what households on firms' standard default tariffs will pay for energy between July and Sept 2026. But you can beat the hikes by switching off the Price Cap. So we wanted to give you the key need-to-knows and actions to take...

Martin Lewis: 'For most people, July’s 13% Energy Price Cap rise is voluntary – it can (and should) be avoided’

Here’s Martin’s reaction to the announcement...

Martin Lewis, MoneySavingExpert.com founder, who wrote this article. Link takes you to his biography page on MoneySavingExpert.com.

"The Middle East conflict will finally force its way onto most people’s energy bills from July, with a 13% rise in the Price Cap. The hit will be biggest for higher users, especially those who use gas, as the change is in the cost of each unit of energy used rather than the daily standing charge. The gas unit rate is up 28%, with electricity up 6%.

"While there’ll understandably be much argument in political circles about who or what’s to blame, the key for consumers’ pockets is that these changes only apply to those on firms’ bog-standard tariffs. Those on fixes won’t see a rise. And that means everyone on the Price Cap should consider getting off it, if they can, for example by locking in a fixed rate below the current Cap – up to 4% below. Do that and you start saving straight away, and then from July the fix will be 15% cheaper than the Cap.

"By October, things for those who stay on the Price Cap are likely to be even worse, with it predicted to rise again by a couple of percent. And even if the conflict in the Middle East ended tomorrow, while that may mean the Cap drops a bit rather than rises in October, it’s unlikely we’d see it return to where it is today. So, fixing seems the risk-averse bet for most.

"Sadly, cheap fixes aren’t available for those on prepayment meters, but most people paying by direct debit can lock in cheaper deals. Don’t stick with your own firm’s fix though, many firms don’t have cheap deals. Your exact cheapest tariff depends on usage and where you live, so ensure you do a whole-of-market comparison.

"The MSE Cheap Energy Club does that by default."

On the Price Cap? Get off it - you can lock in up to 4% less than today's Cap

There are currently only four fixes cheaper, on average, than the current Price Cap, undercutting it by up to around 4%. So you'll save a smidgeon now, but more importantly, you'll protect yourself against upcoming hikes, where that 4% saving will be closer to 15% on average. Switch via our Cheap Energy Club, and you'll also get up to £20 MSE cashback... 

Cheapest fix in the market. Ecotricity's EcoFixed - MS 1 Year May 26 v2 - 12mth fix 
New & existing customers | £75/fuel exit penalties | Dual fuel, elec only, gas only. DD only | Smart Meter required

This is 3.8% less on average than the Apr Price Cap (including MSE cashback). Existing Ecotricity customers can get it too, but if you're on a fix with 50+ days left, you may have to pay any exit penalties. While a Smart Meter is required, Ecotricity told us you can get this deal if you have genuinely tried to get them installed but can't. 

Note: Another small supplier, Fuse, has a fix that's 2.8% cheaper than today's Price Cap. To see your cheapest, do a full comparison.
Cheapest fix from a big-name supplier. E.on Next Fixed 12m Exclusive v1 - 12mth fix
New & existing customers | £50/fuel exit penalties | Dual fuel, elec only. DD only | Smart Meter not required.

This is 2% less on average than the Apr Price Cap (including MSE cashback). Existing E.on customers can get it too and if you're already on a E.on fix, it won't charge you early exit fees to switch to this.

Your cheapest depends on your region and usage level, so use our Cheap Energy Club comparison to find your winner. Though remember, comparison sites (including Energy Club) will currently show savings compared to the current Price Cap (or your current tariff if you're on a fix), as firms' July Price Cap rates haven't been published yet. But come July, the savings will be more substantial.

PS: The market is volatile so prices can change, and new tariffs can come in, but the links above are via our comparison, which is always updated.

Not sure if you’re currently on the Price Cap?  

If you're not on a fix or special deal, you are likely to be on the Price Cap. These are firms' standard default tariffs, often called 'Standard Variable' or 'Flexible' tariffs. Still not sure? Use our new Energy Price Cap checker tool. 

On a fix that is ending soon? You’re free to switch

If you've under 50 days left on your current deal, you can't be charged exit fees, so you're free to ditch it and switch. If you really don't want to take a risk, the safest thing to do is grab the cheapest fix now. Beware, though, if cheaper deals emerge in the next few weeks, you'll end up locking in at a higher rate. But again, there's nothing guaranteed. 

If you're happy to ride it out and think things in the Middle East will be over soon (and so cheaper energy tariffs will return), you could wait and regularly do a comparison in the coming weeks. Either way, do make sure to grab a new tariff before your deal finishes, as you'll be rolled onto your supplier's Price-Capped standard tariff when it ends.

Low Standing Charge tariffs are an easy way for many to save...

The  EDF Simply Tracker and British Gas Cap Tracker  tariffs match the Price Cap unit rates (so when they move, it moves) but with £50 lower Standing Charges for a year. Plus, via our links, you get £20 dual-fuel MSE cashback (£10 for elec only) on both tariffs. Smart meters aren't required (unless you're on EDF smart prepay) and both have £25 per fuel early exit penalties. 

These tariffs are suitable for: 

- Anyone deliberately staying on the Price Cap (especially EDF and BG customers) - they're basically Price-Capped tariffs, just cheaper.
- Lower energy users generally
- Those on EDF Smart Prepay - the only fix available to you.

I can't afford to pay my energy bills - what do I do?

Talk to your energy firm first - many offer hardship & debt grants. For far more guidance, see What to do if you're struggling to pay energy bills.

Thanks,
The Cheap Energy Club team

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