Martin Lewis warns British Gas, OVO, Octopus, EDF customers 'we're moving into new territory'

James Rodger
·2-min read

Martin Lewis has issued a fresh update over whether it's sensible to fix your energy deal. The BBC Sounds podcast host spoke out on the most recent episode, ahead of the new Ofgem price cap being announced for the country, which will take effect in July.

Mr Lewis, the ITV regular, said: “Cornwall Insight have now done the numbers and they are predicting that the price cap on July 1 will drop by an average of 7 per cent. That means it’s likely to drop between 5.5 per cent and 8 per cent because there are some other factors in there.

"But it is very very strongly likely we will see a drop coming in July. That’s the good news. The less good news is that the current prediction for October and January are rises. October it’s predicted to rise just below 4 per cent. January by one per cent."

READ MORE Range Rover, BMW, Audi drivers face £70 fines due to new UK car park rule

The 'big six' is a term often used to describe the six largest energy companies operating in the UK. It includes British Gas, EDF Energy, E. ON, Octopus and OVO. At the height of their influence, these companies supplied seven out of 10 British households with gas and electricity.

Mr Lewis said: “We might see the last drop coming at July for now and increases afterwards. Still, to be fair, when you go down 7 per cent and add 4 per cent on top you’re still less than where you are right now.” Martin said: “If you look over the next year at the predicted price cap, and the price cap is what sets the rate for 90 per cent of homes because 90 per cent of people are on a standard tariff.

"You would look and say on average you will pay roughly 3 per cent less than you do right now. Whereas the cheapest fix available right now is 9 per cent cheaper. So stay on the price cap and you pay 3 per cent less right now but go on the cheapest fix on the market, if you’re on direct debit, is 9 per cent cheaper.

“So you can lock in right now and the probability if the prediction is correct is it will be cheaper 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.”

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Hippopotamuses can become airborne for substantial periods of time, researchers discover

    Hippopotamuses can become airborne for substantial periods of time, according to new research into the mammals. Research by the Royal Veterinary College (RVC) found that the animals can be up in the air for up to 0.3 seconds at a time when moving fast. The findings found that unlike other land animals such as elephants, horses and rhinos, hippos exclusively trot when moving, pushing the limits of what giant land animals can do, the RVC said.

  • Fusion power could transform how we get our energy — and worsen problems it’s intended to solve

    Some processes that support fusion energy fuel climate change and may harm the environment.

  • Here is every adorable baby animal born at Colchester Zoo so far this year

    Take a look at the round up of cuteness from Colchester Zoo's births this year. Every single one is a beauty.

  • Farm welcomes new 'chunk' calf after caesarean section

    Farmers at nearby Roves Farm had quite a dramatic evening after one of their calves needed to be born via caesarean section.

  • Council workers clear the country's 'most dangerous plant' from river valley

    A resident has raised concerns that children could be hurt by giant hogweed at Moses Gate County Park.

  • Analysis-China, struggling to make use of a boom in energy storage, calls for even more

    BEIJING (Reuters) -Rows of what look like thin, white shipping containers are lined up on a barren dirt field in China's Shandong province. Filled with batteries, they form a 795 megawatt (MW) plant that can hold up to 1 million kilowatt-hours of electricity - enough to power 150,000 households for a day, making it China's largest such storage facility when it was connected to the grid last Saturday. Built by Lijin County Jinhui New Energy Co, the project is part of an explosion in development of energy storage in China, which has called for even more investment in the sector to boost renewable electricity and ease grid bottlenecks.

  • Britain's biggest grasshopper will return to the Broads after 85-year absence

    The rare large marsh grasshopper is set to return to the Wheatfen Nature Reserve in the Norfolk Broads next weekend after an absence of 85 years.

  • Chevron Puts Workers on Furlough at Idled German Biofuels Plant

    (Bloomberg) -- Chevron Corp. is putting workers on furlough at a German biodiesel plant that has been out of operation because of oversupply in the market.Most Read from BloombergBiden’s Defiant Interview Unlikely to Calm Democratic NervesA $14 Billion Walmart Heir Joins Novogratz Urging Biden ExitIran Elects President Who Wants to Revive Nuclear Talks With WestTrump Distances Bid From Second-Term Agenda Pushed by AlliesBiden Narrows Gap With Trump in Swing States Despite Debate LossThe biodiese

  • What’s happening with the climate crisis and heat-trapping emissions in Australia

    What is Australia’s contribution to the climate emergency, and how successfully is it acting to address it?

  • Satellite images show deforestation toll of Indonesia mines

    More than 700,000 hectares of forest in Indonesia have been cleared for mining since 2001, including large tracts of primary forest, a new analysis using satellite data has found.It estimates that mining -- including pits, processing facilities, tailings areas and roads -- resulted in the clearing of 721,000 hectares (7,210 square kilometres) of forest between 2001 and 2023.

  • Where to find the best rock pools in Britain

    By all accounts, we’ve some more glorious sunshine approaching – but it doesn’t really matter what the weather is up to: head to a British beach at low tide and you’ll likely see people hopping about with a net, peering into puddles. Still enough to mirror the sky and yet curiously alive, our rock pools are like mini aquariums, offering a glimpse into an aquatic world that we can’t normally visit – and rummaging through them is a time-honoured British tradition.

  • North Sea oil producers urge Labour's Starmer for tax clarity

    North Sea oil and gas producers urged Britain's incoming Prime Minister Keir Starmer to provide clarity on his election promise to increase tax on the sector, warning it could lead to a rapid decline in output and revenue. Starmer's Labour Party swept to power in a parliamentary election on Thursday, ending 14 years of Conservative government. David Whitehouse, Chief Executive of industry body Offshore Energies UK, said the sector and investors were deeply concerned over Labour's plans.

  • Adorable trio of toucan chicks born at Newquay Zoo

    Keepers at Newquay Zoo in Cornwall are celebrating the arrival of three green araçari toucan chicks, one of the smallest members of the toucan family. It is the first time that the species has bred on site in Newquay Zoo's 55-year history. The female, who is 12-years-old, has been at Newquay since 2017, while the young male arrived from Cotswolds Wildlife Park in February this year. The literal lovebirds instantly hit it off, and after a period of courtship, the chicks hatched in late May. All t

  • Dead fish in river not due to pollution incident, says environmental agency

    An environmental agency has confirmed that reports of dead fish in a river in Cwmbran are not due to pollution.

  • UK’s Election Is a Rare Win Against Anti-Climate Campaigns

    (Bloomberg) -- As Britain’s center-left Labour party sweeps into power this morning, winning 411 of the 650 seats at the last count, it’s worth remembering what is happening among its allies.Most Read from BloombergBiden’s Defiant Interview Unlikely to Calm Democratic NervesA $14 Billion Walmart Heir Joins Novogratz Urging Biden ExitIran Elects President Who Wants to Revive Nuclear Talks With WestTrump Distances Bid From Second-Term Agenda Pushed by AlliesSingapore Is Making Life Tougher for Glo

  • Wiltshire solar farm extension to be considered by planning committee

    The existing solar farm between Warminster and Amesbury could be extended if Wiltshire Council’s strategic planning committee give the planning application the go-ahead.

  • Carmignac photojournalism award exposes dangers of e-waste problem in Ghana

    The resulting images capture the immensity of the e-waste problem and the vulnerability of Ghanaians caught up in the system.

  • A study finds Indonesia's deforested land is often left idle. But some see potential in that

    Years after being felled, vast swathes of Indonesia's old-growth forests are left sitting idle. “There’s maybe some hope that if the country can focus on these idle, non-forest lands ... it could potentially drop deforestation to zero, and still have a lot of opportunities for economic development,” said Diana Parker, a postdoctoral associate in the University of Maryland’s Department of Geographical Sciences and the lead author of the study. A vast tropical archipelago stretching across the equator, Indonesia is home to the world’s third-largest rainforest, with a variety of endangered wildlife and plants, including orangutans, elephants and giant forest flowers.

  • Rewilding plan aims to bring majestic white storks to London

    Working group to look at where birds might be introduced and engage with boroughs and local community in capital

  • Norway keen to explore hydropower, carbon capture storage projects in Indonesia

    Norway is seeking to form a stronger partnership with Indonesia and explore investment opportunities in renewable energy such as hydropower, and carbon capture and storage, the energy minister said. "A lot of opportunities are there, and there are some hurdles, but I hope we can build a stronger partnership in years to come," Energy Minister Terje Aasland told Reuters late on Thursday after meeting his counterpart Arifin Tasrif in Jakarta earlier this week. While Norway aims to achieve net-zero greenhouse gas emissions by 2050, it also continues to explore and develop new oil and gas fields, including in the Arctic's Barents Sea, to maintain output that is expected to peak in 2025.