Martin Lewis issues urgent ‘bad news’ warning to energy customers of British Gas, OVO and EDF

Martin Lewis, often known for his financial tips, has delivered some unfortunate news to customers of British Gas, OVO, Octopus and EDF.

The host of a BBC Sounds podcast used Twitter /X to share the most recent predictions from Cornwall Insight about energy bills for Brit energy customers. The money expert broke down the upcoming changes to the Ofgem energy price cap. As per his revelation, initially there will be a drop in the cap by 12% on April 1, followed by a further decrease of seven percent in July.

However, come October, Martin warns that it’ll rise by 4.6%, then again in January 2025, albeit by a smaller amount of 0.2%. Clarifying things further, Mr Lewis tweeted: “Bad News.

“The new energy price cap predictions just out from @CornwallInsight show rates aren’t longer looking to drop as much as they were. Though remember the further out the more crystal ball it is. – Apr 1: 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).” , reports Birmingham Live.

The Money Saving Expert concluded: “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).”

The reason for the latest prediction change is that the relevant wholesale rates have slightly increased from their recent lows, along with adjustments by Ofgem to help companies recover more of their costs incurred from supporting customers unable to pay their bills.

However, a Twitter user responded with skepticism: “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.”

Another Twitter user questioned the fairness of the situation: “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?”.