Bold opening: Energy bills could jump soon unless you act now. If you're weighing a fixed tariff, the time to decide is today, not tomorrow.
Martin Lewis is urging energy customers to fix their bills promptly as global tensions push prices higher, with the Middle East conflict intensifying and gas costs likely to spike. He shared updates on social media early Tuesday, highlighting how the Iran situation could push energy prices upward in the near term.
Lewis warned followers not to delay fixes because suppliers are already raising rates today. While you can still lock in a tariff roughly 14% below the current price cap, he cautioned that this window may close quickly as prices adjust.
Key point: the recent rise in gas prices, driven by the Iran-U.S. tensions, is a major factor behind potential increases in UK electricity prices. In the short term, this is most likely to affect new fixed-rate tariffs. The extent to which it influences the price cap from July depends on how long the spike lasts. If the surge is brief, the impact may be small; a prolonged spike could push prices higher from July onward.
Another immediate concern is the increased cost of domestic heating oil, which has also risen sharply.
Martin noted that wholesale gas rates are a primary driver of UK electricity prices. If the spike sustains, it could lift the price cap from July. Fortunately, some of the cheapest fixes available before the weekend remain accessible for now, offering a rate around 14% under the current cap. This provides potential savings and price certainty.
For those who want to compare options quickly, a whole-market comparison can be done via the linked service. However, be aware that many firms are re-pricing today and tomorrow, so the cheapest deals could disappear soon. There’s also a reminder that fixed rates may be reduced again on 1 April due to changes in how energy costs are funded by the government, even for those already on fixed deals.
A note on policy: Ofgem’s price cap is still set to fall by £117 for the average dual-fuel household from 1 April, and this change is independent of the Iran situation. Still, fixed deals that previously undercut the cap are now likely to rise in price.
Thought-provoking takeaway: If you’re considering locking in a rate, you’ll want to assess how long you expect the price spike to last and how that aligns with the April and July changes. Do you think fixed tariffs will always undercut the price cap, or could such advantages disappear as geopolitical tensions continue to shape energy markets? Share your views in the comments.
