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Martin's Warning...
Energy prices for most will rise to their highest in THREE YEARS... but remember for many the rise is VOLUNTARY!
Here's his full help for those on STANDARD DEALS and for those ALREADY FIXED...

Bad News. Last week Ofgem announced that its domestic Price Cap (for Eng, Scot & Wales) for the 3mths starting 1 October will RISE, even factoring in the Govt's scrapping of electricity VAT for six months, which starts on the same date. Remember, the Price Cap only applies to those on firms' standard tariffs, not those on fixes or special deals - yet that's still 60% of homes. Here's a key facts summary of the Price Cap rise...

• The 3.6% average RISE is on top of July's 12.6% rise. So the Oct to Dec price will be 17% higher than April.
• The last time it was higher was Summer 2023. Which was just after the major hikes from the Ukraine war receded. 
• The big rise is for gas users. Each unit of gas will on average cost 9% more than now, with the Standing Charge up 2%.
• It's not as bad if you're elec-only. The elec Unit Rate's up less than 1% on average, and the Standing Charge is falling.
• You DON'T need to let this happen. If you're on a standard tariff, you can do a cheap fix comparison. Don't just stick with your existing firm though - most don't have cheap deals right now.
• The Cap is currently predicted to rise again in Jan. It's a bit of crystal ball gazing, but analysts say up 13%.

Let me take you through step-by-step, including exclusive best deals, leading on WHAT TO DO IF YOU'RE...

1. On a Standard tariff? Unsure? Then you likely are.
2. Already on a Fixed tariff? Note: what you'll pay will drop.

The Price Cap was designed to be a back-stop for those who can't switch, yet far too many are on it - even Ofgem is urging you to ditch it. That's hard to do if you're on prepayment, but for those who pay other ways, it's worth urgently investigating. If you're ready to, you can just skip straight to fix now and save 8% if you don't want the detail first...

• How to check if you're on a Price-Capped tariff. If you're not on a fix or special deal, you are likely to be on the Price Cap. These are firms' standard default consumer tariffs, often called 'Standard Variable' or 'Flexible' tariffs - the ones you're on if you've not switched or you had a deal that ended and did nothing. The most common ones are...

  British Gas Standard Variable | EDF Standard (Variable) | E.on Next Next Flex | Octopus Flexible Octopus | Outfox Fox Standard Variable | Ovo Simpler Energy | Scottish Power Standard | So Energy So Flex 
  

• The rise will be an average 3.6% but varies heavily with use and area... The Cap isn't about how much firms can charge you in total - it's per Unit Rate and the daily Standing Charge. And barring small firm Home Energy, they all usually charge virtually the max. The new 1 Oct Price Cap Direct Debit average UK rates, including VAT when it's charged, are as follows, though for the specifics for where you live see the regional Cap rates.
  
  

  	Unit Rate	Standing Charge
  Electricity	26.32p/kWh (was 26.11p) UP 0.8%	54.83p/day (was 57.19p) DOWN 4.1%
  Gas	7.97p/kWh (was 7.33p) UP 8.7%	29.68p/day (was 29.04p) UP 2.2%

  
  This is an average rise of 3.6%, so for every £100 it costs you now on average you'll pay £103.60 from October, though of course it varies with usage. It would've been even worse without the electricity VAT cut that also starts on 1 October, as otherwise on 'typical use' it would've been a rise of roughly 6.2%.
  
  PS: I'm oft asked 'does the Cap ever go down, and why does it always rise in Winter' I answered that here.
  
  
• FIX now to save immediately and avoid the price hike... A fix simply means the Unit Rates and Standing Charges are locked in, so they CAN'T RISE for the length of the fix, typically a year. So if you fix now for less than you currently pay, you can avoid the price rises, getting rid of some of the worry. Though of course if you use more, you'll pay more. There are other tariff options (see below), but for most, a fix is the easiest and simplest choice.
  
  - Today's fixes are up to 8% LESS than the current Cap, so you'd save immediately.
  - When the Cap rises in October, they won't rise as they're fixed, so then they'll be 11% LESS.
  
  Your exact saving and winner depends on location & usage though. Because of that, and as deals change all the time, the links take you through our Cheap Fix Comparison.

The BIG QUESTION: Is now the time to fix?

If you've been on your firm's standard tariff at the Cap for ages, get off it and get one of the cheapest fixes while you're minded to. Yet there is a question of timing too...

• A cheap fix today will almost certainly save you compared to the Cap over the next year. The cheapest fixes are currently 8% less than the current Cap, so roughly 11% less than October's. So you will DEFINITELY save until 31 Dec. Then it's currently predicted the Jan Cap will rise over 10% on top, though that is far less certain. 
  
  The three-month Cap starting in January moves mainly based on a 13 week assessment of wholesale rates (those energy retailers pay) from mid-Aug to mid-Nov. We're over two weeks through that, and wholesale rates have been sky-high. Yet as it's done as an average across that time, those rates are baked in, so it would need an enormous and rapid fall in wholesale rates for the January Cap to be less than the current cheapest fixes. Not impossible, but highly unlikely.
  
  In other words, you are highly likely to make material savings until the end of March - and that's the crucial high-use period. April's prices are currently loose, but still predicted to stay high - but even if not, the drop would need to be humungous for it to balance out the savings already made. So for most on the Price Cap, just grabbing a cheap fix now is the sensible risk-averse option.
  
  
• Yet today's fixes are more expensive than they were. Fixes were about 7% cheaper than they are now about two months ago, and 15% cheaper before the Middle East conflict started. That's because, unlike the Price Cap which works on a time lag, the rate you can get a new fix at depends pretty much on today's wholesale rates - and they are sky-high due to renewed heat in the Middle East conflict. (This minute-by-minute graph site of wholesale gas prices, which also feed into electricity, will give you the idea.)
  
  So there is a chance that if you wait, things in the Middle East may settle down, so you will be able to fix more cheaply (or equally things may get even worse). Yet then you're taking a gamble, and every week you wait is a week you pay more. But if you're a regular fixer who'll monitor the market, there's a chance waiting may turn out to be better.

So to be plain: the rise in October's price cap does NOT impact your fix - well, not until it ends anyway. So let's start with good news. The Govt is scrapping VAT on domestic electricity for six months on 1 Oct, and as your rate is fixed, and VAT is just added on top of that, you will see a 4.8% reduction in what you pay for electricity (not gas) from that point.

Yet I'm getting many questions like this on X last week: "@MartinSLewis Hi Martin, what happens if you're on a fix but that's due to expire in next 4 months. Is it possible/better to lock in at a rate now if allowed as surely those rates will be higher to lock in once changed?". The big answer is: be careful ditching your fix early to refix - though it does depend on when your fix is due to end. I'll start with the answer for those who, like this questioner, still have at least a couple of months to go... 

Fixes are the simple and easy choice for most, but there are some options that may beat them in some circumstances....

• Low user? A low Standing Charge tracker may win. The British Gas Cap Tracker tariff matches the Price Cap Unit Rates (so it'll rise in Oct) but with £60/yr lower Standing Charges. Switchers via our link also get £20 dual-fuel MSE cashback too. Smart meters aren't required. This is best for anyone deliberately staying on the Price Cap, as it is just the Price Cap but cheaper - or those with very low usage under c. £80/mth for whom it may undercut a fix. 
   
• Got an EV? Consider a dedicated tariff. There are special electric vehicle (EV) tariffs - if you've got one and the cost of charging it at home is roughly 20+% of your household energy use its worth looking at them.
  
  
• Octopus rapid-change time-of-use tariffs. These are its Agile (electricity price changes every half-hour), and its dual-fuel or single fuel Tracker tariff (price changes every day). Generally, these are for sophisticated users who monitor prices, and with Agile, who shift usage patterns to match. Currently, rates are highly volatile but can be a winner.
  
  Recently, Agile has had days where it's not been much less than the Price Cap off-peak, with peak times far above it - though on other days it can pay you to use electricity for a few hours. Tracker has largely been above the Cap in recent months for electricity and gas, though it's had a few days recently when it's been less. 
  
  Many have asked me about temporarily leaving these tariffs. It introduces a pregnant pause - if you do ditch, you need to wait nine months before you can rejoin.
  
  
• Solar panel tariffs. If you have solar panels, you can link these to your energy bills for the best export rates. See our switch solar panels tariffs guide for more on whether it's worth it.

The rate you pay for energy is only half the story. If you cut what you use, you'll pay less too. We've some strong, evergreen guides on that which can help.

• 70+ ways to save energy includes a mix of hardcore savings and some thrifty crowd-sourced tips. From cutting your boiler flowrate to tactical curtains and more.
• Energy mythbusting covers less clear-cut issues, including the thorny question of 'better to keep the heating on low all day or just when needed?'

And if you're struggling to pay, it's always worth talking to your energy firm. Be polite and straight with it, and make sure you explain if you're vulnerable and ask to be put on the 'Priority Services Register'. There can also be hardship & debt grants from energy suppliers. For far more guidance, see our full What to do if you're struggling to pay energy bills guide.

PS: I know many on home heating oil and LPG are struggling too... As the Middle East conflict has pushed prices up again. I wish I had answers for you. We submitted our heating oil dossier to the Government at the start of the crisis, which prompted the limited help scheme and we continue to push. Last week, the Competitions and Markets Authority said some customers will get compensation for cancelled orders, though details are limited. If you're in Northen Ireland, it will open its support scheme next week, see NI Heating oil compensation and support news.