The Energy Price Cap Could Be Heading Up, and Martin Lewis Says to Act NOW!
Recent events in the Middle East have sent shockwaves through global energy markets, and the ripple effect is now being felt right here in the UK. Specifically, the wholesale gas price – the cost at which energy companies purchase gas – is experiencing a significant surge. This particular price point is a major influence on the cost of electricity in the UK. If this upward trend continues, and that's a big 'if,' we're likely to see the Energy Price Cap increase starting from July. In light of this potential rise, Martin Lewis, the well-known founder of MoneySavingExpert.com, has issued a strong advisory: if you have the ability to move away from the Energy Price Cap right now, you absolutely should, and with urgency.
Why the Urgency to Leave the Price Cap?
Martin Lewis shared his thoughts on X (formerly Twitter) on Tuesday, March 3rd, around 11 am, highlighting the critical situation. He stated:
Important: If you can get off the Energy Price Cap right now, you should and urgently!
His reasoning is clear: the current spike in wholesale gas prices, driven by the Middle East conflict, directly impacts UK electricity costs. Should this surge persist, the regulated Energy Price Cap is poised to climb from its July rates.
Seizing the Opportunity: Cheap Fixes Still Available (For Now!)
Here's where it gets interesting: some of the highly competitive fixed-rate energy deals that were available before the weekend haven't been withdrawn yet. This means you might still be able to lock in a rate that's approximately 14% cheaper than the current Price Cap. Not only will this save you money, but it also offers the invaluable benefit of peace of mind, knowing your rate won't increase. You can explore these options by comparing deals across the entire market through the Cheap Energy Club.
But here's where it gets controversial... Many energy providers are currently re-evaluating their fixed pricing. There's a real possibility that the cheapest deals we see today might be gone by tomorrow morning (Wednesday, March 4th, 11 am). This rapid shift means acting swiftly is crucial.
And this is the part most people miss... Even if you fix your rate now, there's an unprecedented bonus on the horizon. Due to changes in how energy bills are structured by the government, moving some policy costs to general taxation, the rate you lock in will actually decrease on April 1st. This means your unit rates for both electricity and gas will drop, even if you're already on a fixed deal. For a typical household, you can expect an additional saving of 7% to 9% on your bill from April 1st, simply because of this policy shift.
What About Different Payment Methods?
These attractive fixed deals are generally available for most payment methods, with one notable exception: prepayment meters. However, if you're on a smart prepayment meter, there's a specific option: the EDF Simply Tracker tariff. This tariff effectively mirrors the Price Cap but comes with £100 lower Standing Charges and an additional £70 cashback when you sign up via the Cheap Energy Club.
PS. How do you know if you're on the Price Cap?
The Energy Price Cap only governs Standard Variable Tariffs (SVTs). This is the default rate you'll be on if you haven't actively chosen a different plan, or if your previous fixed deal ended and you didn't switch. If you're currently on a fixed-rate plan, an EV (electric vehicle) tariff, a time-of-use tariff, or any other specialized energy plan, you are not under the Price Cap.
PPS. One final thought.
Some of you might be concerned about the risk of an energy firm going out of business. While this is always a possibility, it's important to remember that your credit is protected, and you would be transferred to a new supplier. In the worst-case scenario, you'd simply revert to the Price Cap. Meanwhile, by securing a cheaper fixed rate now, you've already benefited from savings compared to the Price Cap.
Martin Lewis: 'This is about getting a cheap fix, not any fix'
As the day progressed, Martin Lewis provided an update in the evening, at 8:45 pm on Tuesday, March 3rd, 2026:
Update: 8.45pm Tuesday 3 March 2026: With deals being pulled all over the place, this is a reminder that this is about getting a cheap fix, not any fix. When you do a comparison, be careful to ensure you're moving to something materially cheaper than the Price Cap from day one.
He emphasized the need to ensure any new fix is significantly cheaper than the current Price Cap from the outset. He also acknowledged the rapid changes happening in the market. While fixing now offers a sense of security and immediate savings, there's always the chance that if the market stabilizes, even cheaper deals could emerge later. However, predicting the future is impossible, especially given the ongoing geopolitical situation.
So, what do you think? Is locking in a cheaper rate now the sensible move for peace of mind, even if it might not be the absolute cheapest option in hindsight? Or is it worth the risk to wait and see if prices drop further? Let us know your thoughts in the comments below!
