The advice comes as analysts have predicted a sharp increase in the energy price cap in January. According to Bloomberg Economics, bills could rise by 25%, adding around £427 to the £1,723 cap due in October and taking the typical annual figure to about £2,150.
Martin Lewis Tells Households to Compare Tariffs Before Fixing
Speaking on ITV’s Money Show Live, Martin Lewis said he could not guarantee that fixing an energy tariff would save money for people currently on the price cap. He described fixing as a choice for those who want protection from possible price changes. “I cannot say fixing if you’re on the price cap will definitely save you, but it is absolutely the risk-averse thing to do,” he said.
Lewis advised customers with suppliers including British Gas, Octopus Energy, OVO Energy, E.ON Next, EDF Energy and ScottishPower to carry out a broad comparison before making a decision. He said comparison websites should show all available tariffs and customers should check that they are not being shown only selected offers.
According to energy expert Sabrina Hoque from Uswitch.com, some of the cheapest fixed tariffs are currently priced close to the existing price cap. She said savings may not appear immediately but could become more noticeable if the January forecasted increase takes place.
The cheapest fixed tariff listed in the reports was £1,646 a year for a typical household with Sainsbury’s Energy, followed by Outfox Energy at £1,676. These figures were compared with the expected price cap level from January.
Fixed Deals Offer Certainty but Come With Longer Commitments
The choice between staying on the price cap and fixing a tariff depends on how households view future price movements. Fixed deals provide a set rate for the agreed period, while price-capped tariffs change when the cap is updated.
According to MoneySavingExpert, the price cap for typical use was set at £1,663 a year from July 2026, with a confirmed increase to £1,723 from October 2026. The organisation also listed a predicted January 2027 figure of £2,152 based on forecasts from EDF, British Gas and E.ON Next.
MoneySavingExpert noted that many of the cheapest fixed deals available at the time were longer tariffs lasting 18 or 24 months. These offers can provide certainty, though the rates may become less competitive if wholesale energy prices fall later.
Alternative options are also available for customers who do not want to fix. These include variable tariffs that offer discounts against the price cap, as well as time-of-use tariffs where prices depend on when electricity is used. For households considering a switch, the advice from financial experts is to compare the full range of available tariffs and consider both current costs and the level of certainty they want for future bills.
