In a significant development for household finances, Martin Lewis's renowned website Money Saving Expert has unveiled crucial advice that could help consumers slash their energy costs by up to 16 percent. The guidance comes at a pivotal moment, with a lowered energy price cap set to take effect from April 1, 2026.
Collective Switching Deals Offer Substantial Savings
Money Saving Expert has successfully negotiated two exclusive collective switching deals for its members, which promise to deliver considerable financial relief. These arrangements lock customers into fixed-period contracts at rates substantially below the standard energy price cap that the majority of the public currently pays.
Remarkably, the organisation has ensured that these deals will adjust simultaneously with the upcoming energy price cap reduction in April. This strategic timing means that members will continue to enjoy reduced rates even after the regulatory change, providing ongoing protection against market fluctuations.
British Gas One-Year Fixed Contract Analysis
The British Gas one-year fixed contract emerges as a particularly strong option for many households. Currently, this deal is cheaper on typical usage than all available open market fixes, averaging an impressive 14.1 percent less than the existing Price Cap.
These savings are projected to persist beyond April 1, with British Gas committing to pass on the full government price cuts to customers. The electricity unit rate is forecast at 20.3p per kWh, representing a 16 percent saving compared to the predicted April price cap of 24.2p per kWh.
Meanwhile, the gas unit rate is anticipated to be set at just 4.8p per kWh, which constitutes a substantial 31 percent reduction against the forecast price cap for gas at 5.5p per kWh. This contract proves especially advantageous for households with higher energy consumption levels, as customers save on every kilowatt of energy used.
Fuse 18-Month Fixed Contract Details
The alternative offering comes from Fuse Energy, providing an 18-month fixed contract that is approximately 16 percent cheaper than the current standard price cap. While Fuse has also pledged to reduce their rates in April, the decrease may not be as pronounced as the British Gas adjustment.
Notably, the price cap standing charge for electricity is predicted to increase by roughly 17 percent in April, rising to 63.9p per day. However, Fuse aims to maintain this daily fee at a significantly lower rate of around 43.5p per day, representing a 32 percent saving compared to the price cap.
Gas daily fee rates may also prove 31 percent cheaper for those on the Fuse fixed contract, at 24.7p per day versus the predicted April cap of 35.9p per day. This arrangement appears better suited to lower energy users who would benefit more from reduced standard charges rather than cheaper unit rates.
Both deals represent tangible opportunities for households across the UK to mitigate the impact of energy costs, with Money Saving Expert providing clear guidance on which option might suit different consumption patterns best.
