Martin Lewis Issues Urgent Warning: Energy Bills Soaring Due to Iran Conflict
Martin Lewis, the renowned money expert, is urging energy customers to take immediate action as energy bills are set to skyrocket due to the escalating conflict in the Middle East, particularly involving Iran. In a recent Twitter post, Lewis emphasized the urgency of the situation, stating that energy prices are already on the rise and will continue to do so.
The conflict has triggered a significant spike in gas prices, which is a primary factor in determining UK electricity prices. Lewis highlighted that this surge in gas prices is substantial compared to the last six months but distinct from the spike during the Ukraine war. He explained that in the short term, this will primarily affect new fixed-rate energy tariffs, pushing their prices higher.
Lewis provided a crucial insight into the potential impact on the Ofgem energy price cap, which is set to decrease by £117 for an average dual-fuel household from April 1. He noted that while the recent conflict in Iran won't alter this reduction, fixed deals that currently offer rates below the price cap are expected to increase in price from now on.
Lewis advised his followers not to delay if they plan to fix their energy bills, as firms are already adjusting prices upwards. He recommended taking advantage of the current offers, which provide rates around 14% lower than the current price cap, before they disappear. Additionally, he mentioned that the rate locked in at the time of fixing will be reduced on April 1, further emphasizing the need to act promptly.
To assist consumers in finding the best deals, Lewis suggested using a whole-market comparison tool like http://cheapenergyclub.com. However, he warned that many firms are reassessing their fix prices, and some of the cheapest deals might be gone by the following day. He also highlighted the impact of the government's policy changes on energy bills, which will reduce electricity and gas unit rates for those already on fixed deals, further emphasizing the need for timely action.
