Martin Lewis gives update on whether you should switch energy supplier

Setting energy tariffs might be worth considering for some people, said consumer advocate Martin Lewis, although he suggested that most should still be doing nothing.

The energy price cap, which acts as a backstop to limit the amount households have to pay for standard tariffs, is £ 1,277.

It was predicted that it could rise by around 50% in April as global gas prices rose sharply, driven higher by high demand worldwide.

In a letter on MoneySavingExpert.com, Mr. Lewis, the website’s founder, said that it takes a moving company an average of 17 days.

He said that it is worth considering offering someone a solution that is no more than 40% more expensive than their current maximum tariff, especially if they want security in their budgeting.

However, he said the market’s cheapest solution right now averages 56% above the cap.

Some existing customer deals could get closer, although internal changes tend to be faster, people could lose more time at the “cheap price,” he added.

Depending on wholesale prices, firm deals could get cheaper or even more expensive going forward, he said, adding, “It’s not easy.”

Mr. Lewis wrote, “To sum it up, it looks like most people are supposed to be doing nothing (no certainty, I don’t have a crystal ball), it looks like there are only a few fringe cases that should be repaired right now .

“So when in doubt, just stick to today’s cheapest price – that’s the upper limit. And to be clear, the figure of 40% is my best guess, not fixed. “

Mr Lewis noted that he was working on various assumptions, including that neither the government nor the Ofgem regulator would make certain changes.

He recently told the PA news agency, “This year will be a very tough year for many.”

People can use MoneySavingExpert.com’s Cheap Energy Club to compare deals.

Earlier this week, Boris Johnson poured cold water over the demand for VAT abolition from domestic fuel bills, describing it as a “blunt instrument”.

However, the prime minister said ministers had not ruled out further aid to households facing sharp increases in energy bills when reviewing the price cap in April.

For those struggling with energy bills, Ofgem suggests contacting the supplier to agree on a repayment plan.

People can also check whether they are entitled to benefits such as the winter fuel payment or the Warmheim discount.

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