Martin Lewis warning to energy customers of British Gas, OVO and EDF ahead of price cap change

The money saving expert shared ‘bad news’ about the upcoming Ofgem price cap predictions

Athena Stavrou
Friday 29 March 2024 13:56 GMT
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Martin Lewis has issued a warning to British Gas, OVO and EDF customers ahead of changes to the Ofgem price cap.

The money-saving expert took to X, formerly known as Twitter, to warn energy customers that the Ofgem energy price cap rates aren not looking to drop as much as they were.

The cap will be dropping by 12 per cent on April 1, followed by a predictions of a further decrease of seven percent in July.

However, according to independent energy analysts Cornwall Insight, the cap is then likely to rise more than experts predicted in October and again in January.

“Overall over the next year this means you’d pay on average 15% less than the current price cap over the next year once you factor in seasonal usage. There are fixes cheaper than that right now (more coming on that in a bit),” Mr Lewis said.

“It says the reason for the change in prediction is the relevant wholesale rates (those are not the spot rate they’re future rates) have come slightly off recent lows, plus some changes by Ofgem to allow firms to recoup some more of the cost of supporting customers who can’t pay bills.”

According to Mr Lewis, the predictions are as follows:

1 April: CONFIRMED price cap DOWN avg 12.3%, so for each £100 of energy used now, you’ll pay £87.70.

1 July: PREDICTION price cap DOWN avg 7.7% (was predicted down 13%). So for each £100 now, you’d pay £80.90.

1 October: PREDICTION price cap UP avg 4.6% (was predicted up 4%). So for each £100 now, you’d pay £84.70. -

1 January 2025: PREDICTION price cap UP avg 0.2% (new prediction). So for each £100 now, you’d pay £84.80)

Although the updated predictions cite wholesale rates increasing for the upped rates, social media users were sceptical at the news.

“So energy prices are coming down while they increase Standing Charges. With my low energy usage, I will still be paying more per month. How is that fair?” one wrote.

Another said: “Still find it amazing that they start going back up as the cold months approach again. A more cynical person may look into it in another way. Who would have thought it.”

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