Martin Lewis: Avoid pressure to switch to a new fixed energy deal once your current one ends
MoneySavingExpert.com founder Martin Lewis has reaffirmed his message to consumers to sit tight and avoid switching to a new fixed-price energy deal as more gas and electricity providers go bust. On his weekly The Martin Lewis Money Show on ITV he warned people to "do nothing".
The clip above has been taken from The Martin Lewis Money Show, which aired on Thursday 21 October, with the permission of ITV Studios. All rights reserved. You can turn on subtitles by selecting the closed captions icon at the bottom right of the video. You can also watch the full episode on the ITV Hub.
The clear message to viewers whose fixed-rate energy tariffs are about to end is NOT TO ACT and instead, simply to get moved on to cheaper variable tariffs.
MoneySaver Norman wrote into the show and asked whether or not to accept a new energy fix when his current tariff expires. He said his fixed-price deal was due to finish on Sunday 31 October and the company had suggested two new fixes: one £400/year more expensive, and the other – a green energy deal – £700/year dearer.
Do not fix
But Martin reiterated his advice not to take up those offers. He said: "If you do nothing you automatically move to the price cap tariff. What you need to understand is currently energy providers are being forced to sell energy at substantially below the cost price and they do not like it.
"The standard variable tariff is the cheapest tariff. Now, what I'm hearing more and more of is that energy firms are sending letters and communications urging people coming off fixes to fix again because that's what we've always done before.
"They do not want you to be on the price cap tariff because the price cap tariff is at below cost and they want you to pay more money, understandably."
Goto Energy, which has about 22,000 household customers, this week became the latest energy provider to cease trading – meaning a total of 13 suppliers have gone bust in the past six weeks. See our Housing & energy grants guide if you're struggling to pay your bills.