Sammie Ellard-King
I’m Sammie, a money expert and business owner passionate about helping you take control of your wallet. My mission with Up the Gains is to create a safe space to help improve your finances, cut your costs and make you feel good while doing it.
Money saving expert Martin Lewis has issued an urgent warning to millions of UK households – if you’re on a standard energy tariff, now might be the time to fix before the cheapest deals disappear.
In a post on X, Martin explained that wholesale gas prices have spiked sharply, and that energy suppliers could start pulling or repricing their cheapest fixed deals at any point.
His advice was clear: if you’re on the price cap and haven’t looked at fixing, do it now.
Important: If you can get off the Energy Price Cap right now, you should & urgently!
— Martin Lewis (@MartinSLewis) March 3, 2026
- The wholesale gas rate is spiking due to the Iran conflict, and it is a prime driver or UK elec prices. If that's sustained (big if), it will likely push the Price Cap rate up from July
- Some…
So what’s actually going on, and what does it mean for your bill?
Here’s the full breakdown.
Wholesale gas prices have jumped sharply over the past few days.
And if you’re sitting on your energy supplier’s standard tariff right now, that spike could end up costing you.
The good news?
There are still fixed deals available that are around 14% cheaper than the current price cap. But they might not be around for long.
More news:
So Why Are Gas Prices Going Up Right Now?
Global gas supply has been disrupted.
Without getting into the geopolitics of it all, a major liquefied natural gas supplier has paused shipments, and that’s sent wholesale prices climbing.
When wholesale prices go up, energy suppliers start repricing their fixed deals and that means the cheap ones disappear.
This isn’t about your bill going up tomorrow.
The price cap protects you from that in the short term.
But it does mean the fixed deals that are currently cheaper than the cap could get pulled or repriced at any point.
What's the Price Cap and Are You On It?
If you haven’t actively switched to a fixed deal in the last year or so, you’re almost certainly on the price cap.
It’s the default tariff – also called a standard variable tariff – and right now it sits at around £1,849 a year for a typical household.
From 1 April, the cap is expected to drop to around £1,669.
That’s partly because the government is shifting some renewable energy costs away from bills and onto general taxation. So yes, bills are coming down a bit either way.
But here’s the thing – the best fixed deals right now are already cheaper than that April cap. Some are sitting around £1,583 to £1,600 a year. That’s a saving you can lock in today, before suppliers start pulling those deals.
Why Fixing Now Could Save You Proper Money
Right now, the cheapest fixes are about 14% below the current price cap. Even compared to the lower April cap, they’re still roughly 5% cheaper.
And because wholesale prices are climbing, suppliers are likely to reprice their fixed deals upward. Some of the cheapest tariffs on the market today could be gone by the end of the week.
If you fix now, you lock in that lower rate. If wholesale prices keep rising, your bill stays the same. That’s the whole point of a fixed deal, certainty.
There’s also another thing worth knowing. From 1 April, the government is removing certain policy costs from energy bills. That means fixed deals taken out after April should also reflect those lower costs. So if you fix now, your deal might actually get adjusted down slightly on 1 April anyway. Some suppliers have already confirmed this.
What About Prepayment Meter Customers?
This is the frustrating part. Most of the competitive fixed deals aren’t available to prepayment customers. The market just doesn’t offer as many options on that side.
The one exception right now is EDF’s Simply Tracker tariff, which is open to prepay customers. It tracks the price cap rather than fixing at a set rate, but it does offer a small discount compared to the standard prepay cap.
If you’re on a prepayment meter and want to switch to a credit meter, it’s worth calling your supplier to ask. Many will do it for free, and it opens up a lot more options.
What If the Supplier Goes Bust After I Fix?
It’s a fair question, especially after what happened during the energy crisis a few years back when dozens of smaller suppliers collapsed.
The short answer is that your credit is protected. If a supplier goes bust, Ofgem appoints a new supplier to take over your account. Any credit balance you’ve built up is transferred across. You won’t lose money.
The risk of a major supplier going under right now is low. The big six are all financially stable, and Ofgem’s rules around capital requirements are much tighter than they were a few years ago.
PS. One final thought. Some may worry is there a risk a firm I fix with goes bust. Well clearly that's always a risk, but in the hopefully unlikely event that happens your credit is protected and you are moved to a new firm - the worst thing is you'd then be back on the Price…
— Martin Lewis (@MartinSLewis) March 3, 2026
Here's What You Can Actually Do Right Now
If you’re on the price cap (and most people are), here’s a quick checklist:
Compare fixed deals on a comparison site. Look at your annual cost now versus what the fix offers.
Check if the fix has exit fees. Most don’t these days, but it’s worth confirming.
Look at whether the supplier has confirmed the April policy cost reduction will apply to new fixes. Most of the major ones have.
If you’re on prepay, check EDF’s Simply Tracker or ask your supplier about switching to a credit meter.
Don’t panic – but don’t sit on it either. The deals available today might not be the same ones available next week.
If you found this interesting, please share!
Disclaimer: Content on this page is for informational purposes and does not constitute financial advice. Always do your own research before making a financially related decision.
