Martin Lewis issues British Gas, E.on and Outfox warning as energy bills rise

The money saving expert said British Gas, E.on and Outfox had all launched cut price one-year deals

Renowned money-saving expert Martin Lewis has shed light on three major energy companies rolling out cost-efficient fixed deals that could pare down your outgoings by 7% compared to October's bills. Lewis underlined that British Gas, E. on, and Outfox are offering economical one-year deals.

By opting for these fixed deals, customers can curb the 10% increase in bills that many are anticipated to experience. With the approach of winter, millions of households anticipate higher energy costs as Ofgem, the energy regulator, has set a new price cap effective from October 1.

This adjustment will see the current annual rate elevate from £1,568 to £1,717; thus, the typical household paying via direct debit for dual fuel will encounter an annual uptick of £149 or approximately £12 each month a 10% escalation.

Read more: Martin Lewis issues 'dire' UK households warning

Suggesting this may be an opportune moment to secure rates, Martin Lewis commented: "For many who are risk averse, it's a good time to fix as the price cap's currently predicted to stay near that higher October level for the next year."

Ofgem's figures indicate that around 29 million households find themselves on standard variable tariffs which are influenced by the price cap. The cap governs the maximum charge per unit of energy but doesn't put a ceiling on the aggregate bill total hence the £1,717 figure represents estimated average usage.

With a quarterly review schedule, the price cap will continue to impact variable tariff bills, making them fluctuate accordingly. If you switch to a fixed tariff, your energy rate will remain locked in for the contract's duration.

These tariffs are designed to offer customers price certainty by keeping gas and electricity rates consistent throughout the term, safeguarding them against possible future increases in bills.

Its important to remember though, should the price cap decline, those on fixed contracts won't see the benefits. Therefore, before making the jump to a fixed deal, it's crucial to consider the likely changes over your contract period.

Money-saving guru Martin Lewis suggests that, with predictions of the price cap holding steady or rising over the next year, now might be opportune for securing a fixed-term arrangement.

Martin Lewis mentioned: "If you find a fix for up to 11% more than the current (July to Sept) price cap (or 1% more than October's), it's predicted you'll save over the year compared with staying on the price cap."

Right now, Outfox the Market is offering a fixed contract at a rate 7% below October's price cap, he said. Similarly, E. on and British Gas have deals available that are 5% cheaper than the price cap set for October.

The best deal for you will depend on several factors including your geographical location and energy consumption levels. By using Money Saving Expert's Cheap Energy Club comparison service, consumers can find the most cost-effective option tailored for them.