Important: If you can get off the Energy Price Cap right now, you should and urgently!

The wholesale gas rate is spiking due to the conflict in the Middle East, and it is a prime driver of UK electricity prices. If that’s sustained (big if), it will likely push the [Energy] Price Cap rate up from July.

Some of the cheap fixes from before the weekend haven’t (yet) been pulled, so you can still lock in a rate at around 14% less than the current Price Cap, both saving you money and giving peace of mind that the rate can’t rise. You can do a whole-of-market comparison via Cheap Energy Club.

However, many firms are reassessing their fixed prices today and may reprice their deals upward. There’s a risk many of the current cheapest fixes will be gone by this time tomorrow [11am, Wednesday 4 March].

Plus, fix now, and unprecedentedly the rate you lock in at will be reduced on 1 April. This is because the Government is changing the underlying way energy bills work and moving some policy costs to general taxation. This reduces the electricity and gas unit rates even for those already on fixes. So even if you fix now, the amount you pay will drop by 7% to 9% on typical usage on 1 April.

Fixes are available for most payment methods, except prepay. Those on smart prepay can look at the EDF Simply Tracker tariff, which is effectively a Price Cap tariff with £100 lower Standing Charges (and £70 extra cashback on top via Cheap Energy Club).

PS. How to know if you’re on a Price Cap?

The Price Cap only applies to firms’ Standard Variable Tariffs. It’s the default tariff you’re on if you haven’t chosen another deal, or your deal (eg, a fix) ended and you did nothing. If you’re fixed, on an EV (electric vehicle) tariff, a time-of-use tariff, or other specialist tariff, you are not on the Price Cap.

PPS. One final thought.

Some may worry there’s a risk a firm you fix with goes bust. Well, clearly that’s always a risk. But in the, hopefully, unlikely event that happens, your credit is protected and you are moved to a new firm – the worst thing is you’d then be back on the Price Cap. Meanwhile, as the cheapest fixes are cheaper than the Price Cap, you’ve saved.