Rising energy prices mark the beginning of October
In the midst of rising energy prices, experts are offering advice on how households can save money on their bills.
Mike Thornton, CEO of Energy Saving Trust, has proposed a clear roadmap to upgrade the UK's 15 million energy inefficient homes. This plan includes access to low-cost finance and incentives for the supply chain to scale up and meet the demand for home upgrades. Additionally, Thornton suggests a national advice service in England, offering expert, personalized support, to ensure people are empowered to improve their homes and reduce their energy bills.
Meanwhile, Martin Lewis, founder of Money Saving Expert, is urging households to consider fixed-rate energy deals. The current best fixed price deals in the UK market offer annual bills from around £1,479, significantly below the current energy price cap of £1,720 (valid July to September 2025). These fixed tariffs provide price certainty and can protect against anticipated increases linked to the next price cap review expected at the end of August 2025, with a forecasted rise of about 1.5% from 1 October 2025.
Lewis recommends deals like E.on Next's Pledge or EDF Ensure, which are effectively discounted trackers that move with the Price Cap but have lower unit rates and standing charges. He also mentions Octopus Agile and Tracker tariffs, which can be significantly cheaper for more sophisticated energy users, as prices move rapidly.
Lewis, however, refers to the energy price cap as a 'pants cap' due to its perceived negative impact on consumers. He advises using a whole-of-market comparison service, such as MSE's Cheap Energy Club, to find the cheapest energy deals for a specific location and usage.
Unfortunately, the energy price cap increase will disproportionately affect Scottish pensioners, especially during the winter season, according to Katherine Crawford, chief executive of Age UK Scotland. She criticizes the UK Government's decision to means test the Winter Fuel Payment at a low level, which she believes will further burden Scottish pensioners.
As the energy market continues to be unpredictable, fixing your energy rate now with one of the best fixed price deals available can save over £200 annually compared to the current price cap and protect you from the forecasted October increase. This approach offers better financial predictability leading into the colder months.
However, the energy price cap is set to increase by 10% from 1 October 2024 to 31 December 2024, resulting in an annual cost of around £1,717 for a typical dual-fuel household paying by direct debt, an increase of £149 from the current price cap. Despite this, Martin Lewis suggests that there are fixed-rate energy deals available that are cheaper than the current price cap before its 10% increase.
In conclusion, expert advice suggests that fixing your energy rate now, using a whole-of-market comparison service, and considering energy-saving upgrades can help households save money and manage their energy bills more effectively.
In the realm of personal-finance, Martin Lewis, the founder of Money Saving Expert, encourages households to seek out fixed-rate energy deals, currently offering annual bills less than the energy price cap, providing a degree of financial stability amidst the unpredictable energy market. On the other hand, experts like Mike Thornton, CEO of Energy Saving Trust, advocate for industry-wide measures such as access to low-cost finance and incentives for energy efficiency upgrades in businesses like the energy sector, aiming to make homes more energy-efficient and reduce household energy bills.
