Martin Lewis has issued a fresh warning to households over a wave of new energy tariffs expected to hit the market in the coming weeks, cautioning that some could be priced significantly higher than what people are paying now.
The MoneySavingExpert founder told followers, according to the Mirror, that customers should think twice before locking into a fixed deal without carefully checking how it compares with the current Ofgem price cap.
Fixed tariffs lock in unit rates for gas and electricity for a set period, usually a year. They can offer protection if wholesale prices climb. They can also leave bill payers stuck paying over the odds if the cap falls in the months that follow.
Lewis said some of the new offerings landing on price comparison sites are likely to come in above the existing cap level, meaning households who rush to sign up could end up worse off. He also flagged the importance of checking exit fees, which can run into tens of pounds per fuel.
The price cap sets a limit on what suppliers can charge per unit of energy and is reviewed every three months by regulator Ofgem. Around 22 million households on standard variable tariffs are covered by it.
For anyone weighing up a switch, Lewis has previously said a fix is only worth taking if the deal sits at or below the current cap, or no more than a small percentage above it depending on how stable the wider market looks.
He also urged households to check when a tariff officially starts, how long the lock-in runs for, and whether the supplier has a decent record on customer service. Cheap headline rates can sometimes mask poor handling of meter readings, refunds and billing complaints.
Anyone unsure can run their own figures through the MoneySavingExpert Cheap Energy Club or other comparison tools, which flag whether switching beats staying on a standard variable tariff at the latest cap level.