MARTIN Lewis has revealed whether you should fix your energy bills now ahead of further price hikes this year.
The money saving guru said the energy price cap is predicted to rise 32% to £2,600 in October.
1
He said the estimates, based on research by Cornwall Insight, show it could then drop 12% to £2,300 in April 2023.
That’s still above the current £1,971 level.
The price cap jumped 54% in April this year, adding almost £700 a year to the average household energy bill.
The price cap protects the millions of customers who are on their supplier’s standard variable tariff.
Martin said in a MoneySavingExpert video: “There’s very little chance we’re going to see prices drop in October.
“We would need to see a monumental, unprecedented drop in wholesale gas and electricity prices for that to happen.
“Nothing is impossible but I think it’s unlikely.”
“This is my best guess I do not have a crystal ball, there are many uncertainties out there,” he added.
Most read in Money
It used to be cheaper to switch to a fixed deal, but those are now more expensive due to high wholesale gas prices.
Most households should only consider a fixed deal if it’s no more than 17% higher than the price cap rate, Martin said.
He added that some people really value the price certainty offered by a fix, and in that case they could consider going up to 25% above the price cap.
The cheapest fixed deal currently on the market is 35% higher than the cap, he said.
But you might be able to get a better deal directly from your supplier.
Several energy firms have previously offered “flash sale” tariffs to customers.
In March, Octopus was offering a “limited number” of tariffs below the April price cap, costing £1,950 for a household with a medium energy consumption.
Similarly, E.on launched a cheap deal that month, which was pulled from the market after desperate customers swooped.
Keep an eye on your online energy accounts and for emails from your supplier to be the first to know about cheap tariffs.
We pay for your stories!
Do you have a story for The Sun Online Money team?
