Martin Lewis appeared on This Morning today to reveal why now is the best time to lock in a cheap energy deal. The expert claims Britons can save, on average, £300 a year by switching.
Martin explained: “There’s lack of demand. With people staying at home and travelling less there’s been a global sump slump for oil. In fact, for a day last week, staggeringly the US oil price was negative – they couldn’t sell it, so instead they were having to pay to have barrels stored.
“And this low oil price feeds into switchers’ prices for gas and electricity too. They’re at their cheapest for about three years and not just small firms, but large big six companies also have the cheapest tariffs we’ve seen in years.
“But it’s only switchers prices that are cheap, the price cap hasn’t moved and all the big six standard tariffs that most people are on are still costly.
“So, now’s the time for everyone to check their energy tariff and take advantage of historically low oil prices.”
He advised looking for a cheap fixed tariff, so you’ll be locking in at today’s historically cheap rates.
Martin went on: “The typical big six standard tariff for dual fuel is around £1,126/year – which majority of people are on – but you can easily save around £350/year by switching to the market’s cheapest.
“For example, the cheapest 1yr fix is £766/yr – so saving of £360/yr with Tonik Energy’s Green Super Power v3 1yr fix tariff. It’s 100 percent green electricity, and its customer service rating is decent with 89 percent rating it ‘great’.
“Plus it’s fixed for a year, which means you’re guaranteed no price hikes during that time.
“Yet exactly who’s cheapest depends on where you live and what you use, other fixes that will typically save people on standard tariffs over £300 include, Green Network Energy, British Gas, Avro, EDF and E.on – just to show you the range. Most tariffs are only for new customers not for existing customers.”
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How do people get these deals?
Martin explained: “The best way is to use a comparison site like Martin’s ‘Cheap Energy Club’ which is whole of market and with some tariffs it also gives you £25 cashback per dual fuel switch, which you wouldn’t get direct, or go to any Ofgem-approved comparison sites.
“Though do beware, as comparison sites are now allowed to only show you tariffs that pay them, which means you may not see all the deals (for the sake of transparency Martin’s Cheap Energy Club defaults to all deals).”
These comparison sites don’t apply for Northern Ireland as it has different tariffs. There use the Consumer Council for Northern Ireland’s tool.
What happens when you switch? Does someone have to visit?
Martin said: “Those who worry about switching, other than who is billing you and service, very little changes. It’s the same pipes, gas, meter, safety – you don’t lose supply – the only difference is price and customer service.
“And no one needs to visit right now. The only time that’ll happen is if you need a smart meter fitted, as some cheap tariffs require you to have one, but you can still get those tariffs now and they’ll only come and fit them once it’s safe to do so after lockdown.”
What about those on prepayment meters?
The expert added: “If you pay by a key or card meter, as many of the country’s poorest and most vulnerable do, then outrageously there’s nowhere near as much competition, and you pay more – though prices have been capped which has helped a touch.
“If you do a comparison there are often savings to be made, but often less than £100.”
Published at Mon, 04 May 2020 09:58:00 +0000