Energy crisis: Martin Lewis says there are no cheap deals left
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The Money Saving Expert founder spoke on Lorraine this morning about the soaring energy prices, an issue which will affect a lot of people in the UK. He offered an update on what options Britons should be considering next as many are worried about their costs going forward.
He said: “The cheapest fixes today are 60 percent more than they were at the same time last year.
“So, if you come off a cheap fix where you’re paying a grand and you wanted to fix again, you’d have to pay £1,600 and in fact, we are now in a situation I never thought I would hear myself saying.
“There are no cheap deals to switch to, there is nothing cheaper than the price cap.
“In fact, if you were to try and get a fix, you’d be paying on typical usage £300 a year more for the cheapest fix on the price cap.
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“My suggestion is for most people is that you do not switch right now.
“Once you go onto the price cap, you stay there. You treat the price cap like a fixed rate for six months which it effectively is, with the ability to leave whenever you can while we cross our fingers that prices come down.
“Bizarrely right now, and I suspect it’s temporary and hope it’s temporary, the best action, is inaction.”
Many people may have already been impacted as their energy suppliers have gone bust.
Mr Lewis urges Britons in this situation to stay calm as their energy supply will automatically be moved by the regulator Ofgem to a new power firm.
This should happen automatically without having to take any action.
Mr Lewis also discussed what Britons should do if they are owed credit by their energy firms that may have gone bust.
He said: “Your credit is protected by the regulator safety net.
“What that means is your credit will be moved across to your new firm and you’ll be in credit with the new firm.
“This also applies if you tried to switch away from this firm a week ot two ago and you’ve gone to a different supplier.
“If the old firm owes you money, if you were in credit, your credit is protected, don’t panic.”
Ofgem announced three more small energy suppliers have gone to the wall amid the increasing chaos in the sector.
Enstroga, Igloo Energy and Symbio Energy all confirmed they would stop trading, as the latest providers go under, following providers such as Green and Avro.
Neil Lawrence, director of retail at Ofgem, said: “Ofgem’s number one priority is to protect customers.
“I want to reassure customers of Enstroga, Igloo Energy and Symbio Energy that they do not need to worry.
“Ofgem will choose a new supplier for you and while we are doing this our advice is to wait until we appoint a new supplier and do not switch in the meantime. You can rely on your energy supply as normal.”
The Martin Lewis Money Show Live continues tonight on ITV at 8.30pm.
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