Consumer advocate Martin Lewis has said the vast majority of energy customers should continue to “do nothing” but has warned that certain customers may want to remedy the situation.
On ITV’s Martin Lewis Money Show, the host told viewers that changes in the energy market are creating some tough choices for customers as gas prices remain sky high.
The situation is further complicated by the introduction of a new energy cap to be introduced in the coming months.
While details on the energy price cap are not yet announced, Martin predicts an increase of around 50%, meaning many people’s bills will go up.
But the money expert has said that despite the spikes, few people should consider settling a new deal and only if their quoted price is within 40% of the forecast energy price cap.
The decision is complicated, however, as it is not known whether the market will change again or whether the government will intervene.
Explaining the problem, Martin said, “If you remedy the situation now and prices go down, you would have lost that pretty cheap cap in the meantime, but you could always remedy the situation and pay the exit penalties.
“If you don’t fix it and things get worse, you may have missed out on a cheap fix.”
He added, “But my summary is if you are confused, if you don’t understand, listen to this piece. The vast majority of people should not do anything and stick to the price cap, there are only a few borderline cases where a repair could be worthwhile. Though that will likely change soon as we get closer to April and I will of course tell you when it will. “