Martin Lewis issues bill 'fix' update ahead of Ofgem price cap announcement

Martin Lewis said that it was time to fix your power bills as deals can be cheaper than the price cap expected changes
-Credit: (Image: BBC)


Ahead of the anticipated reduction in the energy price cap, consumer finance expert Martin Lewis has provided some insight into whether individuals should be fixing their bills. Speaking on his BBC podcast, he predicted a likely seven per cent decrease.

Ofgem is set to announce the energy price cap for between July and September on Friday, 24 May at 7am. This will determine how much consumers will pay for that period, reports Wales Online.

Advocating for taking advantage of fixed offers post-reduction, Lewis revealed his forecast of a potential four per cent price hike in October and an additional one per cent increase in January next year.

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Providing further context, he stated: "So that's 90% of homes. England, Scotland and Wales. Your price is the price cap price unless you're on a fix or a special tariff, you're on the price cap."

Looking ahead, Mr Lewis highlighted that sticking with the price cap could mean paying around 3% less than in the previous year, but some fixed deals offer even greater savings. He said: "Well, if we look at what will happen to that compared to now over the next 12 months, well, that you would look and say on average, you will pay roughly 3% less than you do right now.

"Now look, it varies by usage. It varies by region, but we're just doing big picture, whereas the cheapest fix available right now is 9% cheaper.

"So the current prediction is stay on the price cap and you'll pay 3% less than now. But go to the cheapest fix on the market and there's a few of them open that are more than 6% cheaper than right now.

"So you've got some choice out there. Cheapest fix on the market, if you're on direct debit, anyway is 9% cheaper, so you can right now lock in a price over the next year.

"Have peace of mind that you know exactly what you're going to pay. And the probability, if the predictions are right, are it will be cheaper than staying on the price cap. It looks like people should be getting a cheap fix right now."

He recommended using a comparison site to ensure the best deal rather than accepting any price offered by the supplier.

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