Martin Lewis tells listeners whether they should fix their bills ahead of the energy price cap announcement

Martin Lewis spoke ahead of tomorrow’s expected energy price cut – and explained whether people should fix their bills. The personal finance guru spoke on his BBC podcast and said it was likely to fall, but around seven per cent. Ofgem announces the energy price cap for the months of July to September at 7am on Friday 24 May – and it will decide how much people will pay for those three months.

And with that in mind, he talked about whether people should take advantage of fixing deals after it drops. The answer he gave his listeners was yes – and he said that later this year, it would most likely rise by four percent in October and another one percent in January.

He explained that all providers charged virtually the full price cap at a standard rate. He added: “So that’s 90% of the houses. England, Scotland and Wales. Your price is the price cap, unless you’re on a fixed or special rate, you’re on the price cap.”

Looking ahead, Mr Lewis said that if people stick to the tariff, they are likely to pay around 3% less than in the last 12 months – but that some fixed offers were 6% – and even more. He explained: “Well, if we look at what’s going to happen to that compared to now over the next 12 months, well, that you’d look and say, on average, you’re going to pay about 3% less than you are doing now. Now look, it varies by use. It varies by region, but we’re just giving an overview, while the cheapest fix available right now is 9% cheaper.

“So the current prediction is to stay on the price cap and you will pay 3% less than now. But go for the cheapest solution on the market and there are some open that are over 6% cheaper than now. So you have a choice, the cheapest solution on the market. If you’re on direct debit, it’s 9% cheaper anyway, so you can lock in a price for next year right now.

“Be reassured that you know exactly what you will pay. And the likelihood, if the forecasts are correct, is that it will be cheaper than staying on the price difference. It looks like people should get a cheap fix right now.” He advised using a comparison site and not just settling on whatever price the supplier offered.