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Martin Lewis reveals whether you should fix your energy bill now after latest £2,800 price cap prediction
MARTIN Lewis has revealed whether you should fix your energy bill now after the latest price cap prediction.
The money saving guru tonight warned the energy price cap is predicted to rise 42 per cent to £2,800 in October.
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It means households could see their bills go up by a further £830 when the new price cap comes into effect.
Earlier, Ofgem boss Jonathan Brearley told the the Business, Energy and Industrial Strategy Committee it is expecting an energy price cap “in the region of £2,800”.
But Martin insisted Brits should only fix their bill if they can find a deal that's 30 per cent more than the CURRENT cap.
He told The Martin Lewis Money Show: "Effectively, if you could find a fix below around 30 per cent more than the current price cap then it's probably worth doing - and you can add five per cent on top of that because you'll get price surety of knowing what your prices are."
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The money expert said we are expecting the cap "to be around £2,800 until next April" before it drops "a little bit";.
He explained it means "we've got four months on this price cap and then you've got at least six months" on the next one.
The price cap protects millions of customers who are on their supplier's standard variable tariff.
It jumped 54 per cent in April this year, adding almost £700 a year to the average household energy bill.
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Today, Ofgem boss Jonathan Brearley told the the Business, Energy and Industrial Strategy Committee: “I am afraid to say conditions have worsened in the global gas market since Russia’s invasion of Ukraine. Gas prices are higher and highly volatile.
";At times they have now reached over 10 times their normal level.
"I know this is a very distressing time for customers but I do need to be clear with this committee, with customers and with the government about the likely price implications for October.
“Therefore later today I will be writing to the Chancellor to give him our latest estimates of the price cap uplift.
“This is uncertain, we are only part way through the price cap window, but we are expecting a price cap in October in the region of £2,800.”
It used to be cheaper to switch to a fixed deal, but those are now more expensive due to high wholesale gas prices.
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.
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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.
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