**Martin Lewis Urges Households to Consider Fixing Energy Tariffs as Price Cap Set to Rise**
Leading personal finance expert Martin Lewis has sounded the alarm on looming increases to household energy bills, advising consumers across the UK to act quickly and consider locking in fixed-rate deals before predicted price rises arrive later this year.
The warning comes as Ofgem’s energy price cap, reviewed every quarter, is expected to edge upwards in October. This follows a brief period of relief for households in July, when the cap was cut by 7%. However, Lewis cautioned that the outlook for the coming months is less optimistic, with various energy market indicators pointing towards higher prices.
Expressing his concerns on social media platform X (formerly Twitter), Lewis noted, “I’m afraid, the October energy price cap is now predicted to rise a touch! Things had been looking better, but the improvement has now softened a little.” He indicated that recent predictions from three major energy firms now confirm the upward trend, which seems likely to set the tone for energy costs until the end of the year.
The energy price cap is chiefly determined by the average wholesale energy costs over a three-month period—specifically, from mid-May to mid-August for the October update. According to Lewis, we are already two-thirds of the way through this critical period, with forecasted figures now hardening. “So it’s looking pretty likely people on capped tariffs will continue to pay roughly the same as they do now until the end of the year,” he said. However, he cautioned that what lies beyond remains “far less clear,” though current trends suggest another rise could be on the cards.
For households keen to keep their budgets under control, Lewis highlighted the importance of reviewing energy deals now, rather than later. Notably, he pointed out that some of the market’s fixed-rate tariffs are currently priced below the regulated price cap. As a result, locking in these deals could prove beneficial, unless there is an unexpectedly sharp fall in wholesale energy prices.
“The cheapest 1-year fixes are currently around 10% less than today’s price cap, so it would take a huge drop in wholesale energy prices over the rest of this year before it wasn’t worth locking in a cheap fix, compared to sticking on the price cap,” Lewis explained. The implication is clear—many consumers could save money over the coming year by opting for a fixed deal now, rather than waiting and hoping for prices to fall further.
While the word “cap” might offer reassurance, Lewis described the current price cap arrangement as “almost certainly a pants cap for most”—suggesting that, in many scenarios, the cap does not provide the level of protection or value that many customers expect. With energy prices set to remain high through the winter months, the decision to act early could help households avoid further financial pressure.
Ofgem, the energy regulator, continues to monitor wholesale trends and adjust the cap to balance consumer protection with market realities. However, many households remain frustrated by the apparent lack of price stability in an already challenging cost-of-living environment. Lewis’s advice serves as a timely reminder that there are still proactive steps consumers can take to gain a measure of control.
In summary, Martin Lewis is urging energy users to review their tariffs now, consider available fixed offers, and act before predicted increases come into effect. As the UK heads into the colder months, making an informed choice on energy providers could be key to weathering the ongoing cost-of-living storm.
Consumers are encouraged to check with their suppliers, compare available deals, and seek impartial advice before making a switch. With the energy market remaining unpredictable, those small actions taken today might prove significant in the months ahead.