Martin Lewis urges British Gas, EDF, OVO, Octopus customers not to wait 'until July'

Martin Lewis has urged people considering fixing their energy tariff to not wait until July. Mr Lewis, the BBC Sounds podcast host, spoke out on Twitter/X after the recent Ofgem energy price cap was confirmed following Cornwall Insight predictions.

Responding to energy bill customers, Mr Lewis said in a warning to British Gas, OVO, EDF, Octopus customers: "Some asking me, "but isn't it worth waiting until the July price cap fall. to fix?'... The energy Price Cap will change in July, but that only impacts a firm's Standard Variable Tariff, it doesn't impact fixes - they are not capped.

"The rate you can fix at, depends on how cheaply energy retail firms can buy ahead energy at the time they offer the fix. 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.

READ MORE Brits in Spain and Portugal told to prepare for 'dramatic' shift starting today

"The price cap dropping has no impact; In fact it's based on past wholesale prices - so its completely delinked. 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), the price cap only lasts three months. So the instant price is only a quarter of the decision anyway." Mr Lewis went on and said: "That's why I try and base my assessment on Cornwall Insight's preditions for the year ahead."

"Martin your wonderful and I follow your advice, but you don’t need to use your hands, your eyebrows do it all for you. Sorry, he he," another replied. "Imo there is no point. They drop the main charges but increase the standing charges, so there is barely any difference," a second said.

"I’ve become a bit of an energy anorak following a complicated dispute with my supplier. As soon as new price cap & (more significantly) Cornwall insight data came out today, the fix that’s been on offer was changed to a worse rate…so the fix on offer was impacted immediately fyi," another wrote.