With energy prices set to rise by £111 a year from April, UK households are being urged to take swift action to keep their energy bills manageable.
According to Birmingham Mail News, experts suggest that switching energy providers could help reduce costs significantly, especially with the opportunity to lock in rates below the new Energy Price Cap.
Households may also benefit from flexible plans offering no exit fees, giving them the option to adjust if prices fluctuate later in the year.
Energy Price Cap Increases in April
The Energy Price Cap is set to rise by 6.4% in April, meaning that households already facing high energy bills could see even steeper charges. This increase is expected to hit two-thirds of homes across England, Scotland, and Wales, further straining household budgets.
The rise in energy bills is expected to significantly impact finances, making it more important than ever for consumers to consider switching providers or locking in better rates to mitigate these additional costs.
The average household is expected to face an additional £111 per year in charges, adding more pressure to already tight finances.
The No-Risk Offer From Edf Energy
In response to the impending price hikes, Martin Lewis’ Money Saving Expert (MSE) has highlighted an attractive offer from EDF Energy. The ‘Simply Fixed Direct’ tariff is currently 4.8% below the Energy Price Cap and 10.5% below the expected Price Cap in April.
Additionally, this plan offers the added benefit of no exit fees, making it an appealing option for those who may want to switch but are concerned about potential future price drops. As MSE points out,
Energy Price Cap to rise 6.4% in April, but what next? The no-risk fix.
What Makes This Offer Unique?
Unlike many other fixed-rate energy plans, the EDF offer allows customers to leave the contract without paying any penalties. This flexibility means that if energy prices fall, consumers can switch without incurring additional costs, making it a no-risk option for those who want to avoid higher rates.
Additionally, this tariff is currently 4.8% below the current Price Cap and 10.5% below the expected increase in April, offering significant savings.
How Can Households Benefit From Switching?
Experts recommend that households act quickly before the new Price Cap kicks in. With some energy providers offering tariffs that are up to 7% cheaper than the upcoming price increase, making the switch now could save consumers a significant amount in the long run.
The key is to lock in these lower rates before April, especially given the uncertainty surrounding future price fluctuations.
MSE also noted,
The Energy Price Cap, which two-thirds of homes in England, Scotland, and Wales are on, moves every 3 months – and we know it’ll rise 6.4% in April.
However, if conditions improve, like a resolution in Ukraine, energy prices could fall, providing further benefits to customers who are flexible in their tariff choices.
