Martin Lewis issues urgent warning to British Gas, OVO, Octopus customers and ‘it’s bad news’

Martin Lewis has issued an urgent “bad news” warning to British Gas, OVO, Octopus and EDF customers. The BBC Sounds podcast host was speaking out on Twitter/X after the latest Cornwall Insight energy bills projection for UK households.

Mr Lewis revealed on April 1, the Ofgem energy price cap would drop by 12 per cent – and from July it would be down seven per cent. But in October, it would go up by 4.6 per cent and up again next January, 2025, by 0.2 per cent.

Mr Lewis wrote: “Bad News. The new energy price cap predictions just out of @CornwallInsight show rates aren’t longer looking to drop as much as they were. Although remember the further out the more crystal ball it is. – 1 Apr: Confirmed price cap DOWN avg 12.3%, so for each £100 of energy used now, you’ll pay £87.70.

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“- 1 July. PREDICTION price cap DOWN avg 7.7% (was predicted down 13%). So for each £100 now, you’d pay £80.90. – 1 Oct. PREDICTION price cap UP avg 4.6% (was predicted up 4 %). So for each £100 now, you’d pay £84.70. – 1 JAN 25. PREDICTION price cap UP avg 0.2% (new prediction). So for each £100 now, you’d pay £84.80).”

The Money Saving Expert founder went on: “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).

“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.”

A Twitter user replied: “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.”

“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?” another asked.