Martin Lewis issues 'last' warning to British Gas, OVO, EDF and Octopus customers

Pictured is Martin Lewis
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Martin Lewis has sounded the alarm for energy consumers as bills are expected to surge once more. The renowned Money Saving Expert and BBC Sounds podcast presenter has offered his latest insights on whether customers of British Gas, OVO, EDF, and Octopus should fix their energy bills.

MSE stated: "On Friday, energy regulator Ofgem confirmed the Energy Price Cap will drop an average seven per cent from 1 July. So for the 85 per cent of homes in England, Wales and Scotland on a price-capped standard tariff (everyone except those on fixed or special tariffs - if you're not sure, you're likely on a capped tariff), for every £100 you spend now, you will typically spend £93 from then.

"This is the last predicted fall for now... We're already into the assessment period for the October Price Cap (it runs 17 May to 16 Aug) - which is set mainly on wholesale costs - those the energy retailers pay."

He remarked: "We have no clue what that will be in July. It may be cheaper than now, it may be more expensive - it's about world markets.

"The price cap dropping has virtually no impact; it's based on PAST wholesale prices - so it's completely delinked."

The ITV stalwart went on to clarify: "Of course, when the price cap moves, it changes the differential between its price and the cost of a fix (and firms may factor it in at the margins to their pricing decisions, as to how cheap they have to be to win market share)."

"Yet remember you're fixing for a year (or more) and each price cap period only lasts three months. So the instant price is only a quarter of the decision anyway."

He added: "That's why we try and base our assessment of whether you'll save on Cornwall Insight's predictions for the year ahead."

"So if you want to fix, as the differential looks decent now, it's a decent bet at the moment."

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