Martin Lewis Warns of Rising Energy Bills Amid Iran Conflict
Martin Lewis, the renowned money expert, is urging energy customers to act now as energy prices are set to soar due to the escalating tensions in the Middle East, particularly the conflict involving Iran. With prices already on the rise, Lewis warns that the situation will only worsen, and consumers should take immediate action to secure their energy bills.
In a recent Twitter post, Lewis highlighted the rapidly evolving situation between Iran, the US, and the broader Middle East, and its potential impact on gas and electricity prices. He advised his followers not to delay if they plan to fix their energy bills, as companies are adjusting prices upwards in response to the conflict.
Currently, consumers can still find energy fixes at a 14% discount compared to the price cap, but Lewis emphasizes that this won't last. He stated, 'Planning to FIX your energy bill soon? Don't procrastinate. Companies are adjusting prices upwards today and tomorrow due to the Iran situation. The cheapest deals are still 14% under the Price Cap, but I doubt this will endure.'
Lewis further explained that the spike in gas prices, a significant factor in UK electricity prices, is substantial when compared to the last six months but distinct from the spike during the Ukraine war. This increase will primarily affect new fixed-rate energy tariffs in the short term. The extent of its impact on the Price Cap from July onwards depends on how long the spike persists. A short-term spike will have minimal effects, while a longer one could drive prices higher from July.
Additionally, Lewis mentioned the rising cost of domestic heating oil as another immediate concern for energy consumers. He also provided a practical solution for those on smart prepay, suggesting the EDF Simply Tracker tariff, which offers a price cap-like protection with lower standing charges and cashback.
Despite the Ofgem energy price cap's upcoming reduction of £117 for average dual-fuel households from April 1, Lewis's advice remains crucial. He stressed that fixed deals undercutting the price cap are likely to increase in price, and consumers should act promptly to secure their energy bills and potentially save money.
