Archive: MoneySavingExpert's Money Tips Email

Martin's 3 Energy Crisis Need-To-Knows
1. Energy firm bust (Avro, Green etc)? What now...?
2. Urgent. EVERYONE download energy bills/credit now.
3. All cheap deals pulled. Nowt beats the price cap.

Things are moving at a pace. Staggeringly, since last week's email, two energy firms have gone bust; all deals cheaper than the 1 Oct price cap have been pulled from the market; and the cost of the cheapest 1yr fix rose by typically £200/yr. To hear me talk you through it, watch back my ITV energy special, but in brief, here are this week's key need-to-knows...

1. Energy firm (Avro, Green etc) gone bust? We analyse how much you'll pay now. The regulator Ofgem has now announced the 'supplier of last resort' (which'll take over supply) for all six firms that have recently gone under. We've analysis of the new deal and customer service for Avro, Green, PFP, Utility Point and People's Energy customers.
MSE UPDATE 4PM WED. Igloo Energy, Symbio Energy and Enstroga have now ceased trading, affecting more than 230,000 households between them. In total, nine suppliers have now gone under this month alone.

2. Urgent. Everyone download energy bills / screenshot credit amounts. More energy firms are likely to fail. If / when that happens, customers race online to see their balances, but often fail as the websites have already been shut down. So as a precaution, grab the info now, and regularly during the crisis. While the risk is far lower with the big firms, it's still good practice. Full help in Screengrab your energy credit NOW.

3. All cheap deals have been pulled. Nowt beats the price cap. On Friday (1 Oct) the energy price cap will rise by 12% (13% prepay). For someone with typical use, that's up from £1,138/yr to £1,277/yr (use more and it'll be higher, use less and it'll be lower). This rate applies to those who've never switched, and sets the default for those coming off fixed deals. Over half of UK households are on it. Having always been crap, it's now the cheapest - cheaper than the cost price of energy. There are no switchable deals meaningfully lower. In fact, very few providers even allow switching at the price cap rate.

This new cap will last until 1 April. I would view it as a six-month fixed rate, which you have the freedom to leave whenever you want (hopefully because cheaper deals return).

On 1 April, it is likely the cap will rise substantially again. We know this as the assessment period for setting it has already started - on the current run-rate, the prediction is another 14% hike to £1,455/yr (on typical use). Yet that is still cheaper than today's cheapest fixed-rate deal, E.on's 2yr fix at a typical £1,477/yr. In fact, in this perverse market, the cheapest 1yr fix costs £100/yr more than that. If things deteriorate further, this may look a decent rate with hindsight, but right now it seems a very substantial premium to pay for certainty, and my best guess is, for most, it isn't worth it.
MSE UPDATE 1PM WED: E.on has increased the price of its 2yr fix. The cheapest is now Scottish Power's 1yr fix at a typical £1,577/yr.

On a prepayment meter? You can still switch and save. The situation is very similar, except there are a few providers with variable rates that undercut the new price cap. The likelihood is they'll raise prices to the cap soon, but you could do a prepayment comparison to save in the meantime.

Struggling to pay bills? There may be help available... Emergency pandemic rules mean your supply can't be cut off and prepay customers can get emergency credit. If you're struggling, let your supplier know you're vulnerable - it may be able to offer payment reviews, breaks or reductions. Those on lower incomes may also be able to apply for £140 towards bills via the 2021/22 warm home discount. More help in our Home & energy grants guide.

Plus, most people (including me) waste energy. We know wearing jumpers, lowering thermostats and not leaving electricals on standby will help, but we don't always do it. Maybe these price hikes may change behaviour. Answers to common questions such as 'Should you keep the heating on all day, or only have it on when needed?' are in our 18 energy mythbusters guide, and there's more help in top thrifty heat-saving tips.

New. Earn £264 in Nectar points (or a £150 Amazon voucher) just for doing your Christmas shopping...

• New. Earn £264 in Nectar points or £150 in vouchers if you spend £3,000 over 3 months. The American Express Preferred Rewards Gold* (always first check your odds of being accepted) has just temporarily increased its bonus from 20,000 Amex reward points to 30,000.
  
  To get this you need to spend £3,000 on it within the first 3 months. And as you get the usual 1 point per £1 as well, you'd have a total 33,000 points - which you can exchange for £150 in Amazon, M&S etc vouchers or convert into £264 of Sainsbury's shopping via Nectar points. So if you think you'll hit the £3,000 it's a real winner.
  
  Important. The card is fee-free in the first year, but £140/year after, so once you've got the bonus, remember to cancel before a year if you don't want to pay it. The card has a 24.5% rep APR if you don't pay it off in full (APR examples). And you won't qualify for the intro bonus if you've had a personal Amex in the last two years.
  
  
• Spending less? Earn 5% cashback on an up-to-£2,000 spend in 3 months. The fee-free Amex Platinum Everyday* (always first check your odds of being accepted) pays 5% cashback on up to £2,000 of spending in the first 3 months, then tiered cashback up to 1% above.
  
  You get the cashback on the first anniversary of getting the card, provided you've spent at least £3,000 on the card in that time (if you'll spend less, don't bother). Fail to repay fully and it's 24.5% rep APR (APR examples). Again you can't get the intro bonus if you've had a personal Amex in the last two years.
  
  Or there's a similar Amex Nectar card which gives £120 in Nectar points rather than cash.
  
  
• Had a personal Amex in the past two years? Get up to £40 in Nectar points. Other non-Amex cards include a bonus £40 in Nectar points via this Sainsbury's Bank Nectar card or a £30 Amazon voucher via this Amazon Platinum card.
  
  
• When we say pay off IN FULL, we mean IN FULL, not nearly in full. The words IN FULL are Martin's catchphrase for a reason. If you spend £1,000 in a month and clear the card entirely, there's no interest. Spend £1,000 and pay off £999, and you usually pay interest on the whole £1,000, not just the £1 left.
  
  While we're at it, never withdraw cash on the card as you'll pay interest even if you clear it in full. And never go over your credit limit, or you'll pay a fee.