Martin Lewis has explained whether the conflict between Ukraine and Russia means households in the UK should now fix into an energy deal.
Russia today launched a “full-scale invasion” on Ukraine, with thousands of its troops being sent toward and around the borders of the Eastern European country and its capital Kyiv.
But the crisis will also have a knock-on economic impact across the world - especially in the UK, where it is feared fuel and energy costs will rise as a result.
This is because the price of these fuels is linked to Brent crude, which increased to more than $100 (£74.29) a barrel as Russia moved into Ukraine.
This is the first time Brent crude has cost more than $100 (£74.29) a barrel since 2014. Europe also gets around 40% of its natural gas from Russia.
On his ITV Money Show Live show this evening, Martin was asked by one concerned viewer what the Russia-Ukraine conflict could mean for his energy bill.
The viewer, known only as Mike, said: “I watch the show every week and am aware [of] the advice on energy supplies to do nothing BUT because of the situation in Ukraine today, the price of gas has gone up by 40%. Would a fix now be advisable?”
In response, Martin said it would be “a gamble” to fix as no one can be sure of how energy prices will fluctuate this year.
However, if wholesale gas prices were to stay at the level reached today, then the MoneySavingExpert founder says we could “see another 50% rise in the price cap, bringing the typical bill to £3,000 a year” in October.
“But we don’t know if that spike will continue,” Martin said.
For those who want "peace of mind" Martin suggests you should still only consider fixing if you can find a fixed deal within 60% of the current price cap - pushing up to 80% for those who are really worried.
“I’ve said before, if you can find a fix within 60% of the current price cap, it’s probably worth it. Back of the envelope, it’s probably now 80% if you want peace of mind.
“Ultimately, until April we’re on a cheap rate, from April we’re on a cheaper rate than any fixes - so it’s a gamble. I don’t know and I can’t give you the right answer.”
He added: “This is a horrible situation first of all for people in Ukraine and energy is secondary.”
UK households are braced for a huge jump in energy bills from April, when the price cap will rise by £693 from £1,277 to £1,971.
Prepayment customers will be worse hit, with an increase of £708 from £1,309 to £2,017.
The move will affect some 22 million households and follows a 12% rise in October.
The price cap sets a limit on the rates a supplier can charge for each unit of gas and electricity you use and is reviewed twice a year.
It will affect default tariff customers who haven’t switched to a fixed deal and those who remain with their new supplier after their previous supplier exited the market.
