Martin Lewis urges energy customers to check out the fixed-price deal

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Martin Lewis warned that households could see their prices rise after losing government assistance. (GT)

Martin Lewis urged energy customers to check their fixed-rate deals as prices have likely skyrocketed.

Households “closed in costly repairs” could see their prices rise after losing the government’s Energy Price Guarantee subsidy on July 1, the consumer champion warned.

This could cause their energy bills to rise significantly more than Ofgem’s new price cap of £2,074.

Lewis urged households to check whether their fixed rates have changed, and if they are significantly above the cap, he said they should consider moving to the provider’s cap rates.

Lewis, founder of Money Saving Expert, tweeted: “WARNING: ON ENERGY FIX Check now if your price just went up.”

He added: “So check if your repair rates have changed. If so, it is actually higher than your cap rates, you should consider ditching your repair and moving to your provider’s cap rate (although any early exit penalties should be considered) .”

Read more: Energy bills: Why you should check your meter reading this week

The average price for each unit of electricity a person uses has been reduced to 30p per unit, while gas prices will drop to 8p per unit.

The average household will save around £426 a year on energy bills, according to regulator Ofgem – which sets levels and calculates average usage.

This means the average new price that Ofgem says a bed can be charged will drop from £3,280 to £2,074.

After government support, families have paid an average of £2,500 – meaning they would save just over £400.

Read more: UK households warned of higher energy bills this winter

Ofgem says the average price a new bed can be charged will drop from £3,280 to £2,074. (GT)

This is the first time in more than three years, since February 2020, that people’s energy bills have fallen below their suppliers’ standard tariff.

But those bills are still extraordinarily high by historical standards.

Less than two years ago, the bills for a typical household were just £1,271 a year.

Energy consultancy Cornwall Insight said it believed the cap on energy bills would fall to £1,978.33 from October’s £2,074 in July, but rise again from January to £2,004.40, based on Ofgem’s actions. current.

Cornwall Insight expected the regulator to announce price caps of £1,871 per year from October and £1,900 from January.

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