Martin Lewis advises British Gas, EDF, EOn and Octopus customers to secure £152 discount before price cap change

Martin Lewis
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Martin Lewis is sounding the alarm, advising people to take action within the next five days to secure a significant £152 saving on their gas and electricity bills from providers such as British Gas, EDF, EON, and Octopus Energy.

The financial guru has called on his followers to snap up a bargain deal before the Ofgem price cap adjustment on July 1.

Households can expect to see an average reduction of £118 per year in energy bills, which equates to a seven percent drop, due to the upcoming price cap change.

However, with the next price cap revision in October anticipated to bring about a 12 percent rise, securing the lowest possible rate for the year means fixing a deal now, prior to the price cap shift.

Given that deal changes are not possible over the weekend, there's effectively only a five-day window from Monday to Friday to grab the best offers before they disappear with the new price cap coming into effect, reports the Express.

Martin explained: "If you look over the next year at the predicted price cap, and the price cap is what sets the rate for 90 percent of homes because 90 percent of people are on a standard tariff. You would look and say on average you will pay roughly 3 percent less than you do right now."

"Whereas the cheapest fix available right now is 9 percent cheaper."

"So stay on the price cap and you pay 3 percent less right now but go on the cheapest fix on the market, if you're on direct debit, is 9 percent cheaper."

"Therefore, by locking in now, and if predictions hold true, it's likely to be more cost-effective than the price cap."

"So it looks like people should be getting a cheap fix right now. We are moving back into that fixing territory right now."

If you were to fix on a deal which saves 9 percent against the current price cap of £1,690, that would be a £152 saving.

But Martin added: "Caveats: energy prices are worldwide and they change and there is no certainty here, but I would say strongly on the balance of probability right now if you were to get a cheap fix it looks like you will save money over the next year and you will at least have peace of mind when you do that, so we are at least in that environment."