As peace talks ramp up in Ukraine, Martin Lewis has issued a warning to households about their energy prices, and how the conflict between Ukraine and Russia could impact us here in the UK
Money-saving expert Martin Lewis has delved into the potential effects on UK energy prices amid ongoing peace negotiations in Ukraine. With US President Donald Trump pushing for a resolution three years after Russia’s 2022 invasion, high-level talks have been taking place between American and Russian diplomats.
Ukrainian President Volodymyr Zelensky was recently embroiled in a public disagreement with Trump during a press conference at the White House, highlighting the tentative nature of peace discussions. The US seems hesitant to commit to security assurances for Ukraine, as evidenced by the tension in the White House.
Despite the uncertainty surrounding the peace efforts, any agreement could have significant repercussions beyond Ukraine’s borders – including here in the UK. Discussing these global implications, Martin Lewis shared his insights on ITV’s This Morning.
He suggested that a successful peace deal might result in lower energy prices for Brits. His comments came amidst discussions about the upcoming 6.4% hike in the energy price cap set for April 1.
Chatting with hosts Ben Shephard and Cat Deeley, Lewis touched upon the situation in Ukraine while advising a single mother who is currently on British Gas’s lowest tariff until May 26 and contemplating a switch. He clarified a common misconception regarding fixed rates following his statement last week: “We talked last week about [how] the energy price cap is going up 6.4% on the 1st of April.”, reports the Express.
“Many people think that fixed rates go up as well. They don’t. Just [to] be slightly complicated… The energy price cap is set on past wholesale rates.”
“The April energy price cap is set on wholesale rates between the middle of November and the middle of February. They went up so it’s gone up.
“What the rate you can fix at is based on the rate that energy providers can currently buy in energy for the next year. Now that doesn’t move in sync with the price cap.
“I can’t tell you what the situation may be in May. Look, you know, if there is peace in Ukraine and Russian gas supplies are turned back on, energy prices will be a lot lower then.
“You will be able to fix at a much lower price than it is now. If the opposite and it looks like we are going to continue to be entrenched in that Ukraine situation, then energy prices – or Russian supply isn’t back on – energy prices will be higher.
“So I can’t tell you what the situation will be in May because it’s simply an unknowable. But I can say the likelihood is, right now, I would suspect your fix is very cheap so you probably want to keep it running as long as you possibly can.”
On the same show, he also advised viewers about a rule that comes into force with 50 days to go before a fixed deal ends.
The MoneySavingExpert website founder spoke after a question from Mandy, a single widowed mum on Universal Credit.
Her full question said: “I am currently locked into the lowest British Gas tariff until the 26th of May, but I am not sure why that’s the date because I locked in last April. I can’t seem to change until the 26th without breaking the contract and incurring a £75 fee.
“What is my best option? I use very little energy as I am a single widowed parent of two young children. I am also in receipt of Universal Credit.”
In response, Martin advised: “Well, if you fixed just over a year ago, you are probably on a cheap rate right now so you don’t want to do very much.”
He then explained the typical duration of energy fixes, saying, “You ask why the fix is… most fixes with British Gas… tends not to do a year, it tends to have a fix available that is available to a set date. That is normally a year-ish, so sometimes it’s 13 months, sometimes its 13 and a half, depending on when you get it before it launches a new one.”
Martin then highlighted an important tip for all consumers: “Now the first thing everybody needs to know, so note this down everyone, if you are on a fix, within the last 50 days of your fix – so that literally means day 49 , day 48, 47, 46 – you are free to move and they cannot charge you early exit penalty.”
He clarified further, “Early exit penalties cannot be charged in the last 50 days of your fix. So it isnt quite a case of you have to wait until the 26th of May.”
He added, “You have to wait until, if you don’t wanna pay an early exit penalty, you can wait to 49 days before the 26th of May, which is probably, what, the beginning of April. Having said that, I would suspect that you are on the cheapest fix at the moment.”