Money Saving ExpertMartin Lewis has shared a new video on his social media and YouTube channels over the ongoing energy crisis after E.on customers reported that they were being offered two new fixed-tariff deals in their online accounts.
Posting on Twitter, he wrote: “IMPORTANT PLS SHARE: Eon & Eon Next Direct Debit customer on the price cap?
“Log in today & see if ur offered NEXT ONLINE V11 1yr fix. It should be SAME rate as the April price cap (ie 54%ish more than now - check) - if so, as cap likely to rise another 24+% in Oct it's a corker.”
Describing the deal as a “winner” the financial guru urged customers to log into their online energy account to see if they were being offered a one-year fixed tariff deal.
Martin highlighted how the E.on Next Online V11 one-year fixed tariff deal is the same rate as the April 2022 price cap announced by Ofgem last month.
The energy price cap limits the rates a supplier can charge for each unit of gas and electricity you use and is going up by £693 from £1,277 to £1,971 on April 1.
Some E.on customers are also being offered a slightly more expensive two-year fixed-tariff deal, which Martin described as a “slightly less but still a definite winner”.
The reason why this could be seen as less of a ”definite” is that you're signed up for a longer period of time and it's hard to predict how energy prices could fluctuate over the long-term.
He explained in response to a query on Twitter: “While the 1yr is a definite winner, the 2yr is a likely but less definite winner.
“As it depends on the cap from April 2023 (which current predictions say'll drop).
“Yet if for price certainty it's not a bad call.”
Martin also warned customers they would be missing out on around a month of lower rates if they lock in now before the new price cap comes into force from April.
But he predicted that it could still save you money in the long-run if prices rise again in October - which he explained in the video is almost certain to happen, but not by the eye-watering £3,000 being reported by some media over the weekend.
The risk with the longer-term fixed deal is that if prices fell within the year - and they are expected to in April 2023 - then you could end up paying more if you stay on the fixed rate - but experts at Cornwall Insights think this is very unlikely.
Martin also urged everyone to “check all the terms you're offered before signing up” as some customers reported being offered these fixed-rate tariffs from E.on on the condition that they accept a smart meter.
You can watch Martin’s Urgent Energy Bills Crisis Video Briefing on Youtube here.
