Martin Lewis announces 'better news' for every household as energy bills to drop

23 January 2024 , 14:45

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Martin shared his response to the Cornwall Insight's latest price cap predictions (Image: No credit)

Martin Lewis has shared "better news" for everyone in the UK who pays an energy bill.

The Money Saving Expert (MSE) website founder reacted to Cornwall Insight's latest Ofgem energy price cap predictions yesterday sharing a post on his X - formerly Twitter - account. According to new predictions from consultancy firm Cornwall Insight, annual energy bills could fall by 16% from the current £1,928 a year to £1,620 in April 2024.

If this prediction is correct, then this will be the lowest Ofgem's price cap has been for two years. The reduction also means that a typical household will see their bills drop by more than £300 a year from spring.

Adding more reassurance to energy account holders, Martin told his followers that April's prediction was "pretty firm" as we are two-thirds through the assessment period. Energy bills are expected to fall further in July and will slightly increase again in October. However., Martin explained that the further away the prediction date, the more "crystal ball-gazing" it becomes.

In his post he wrote: "Better energy news. Here are @CornwallInsight 's new price cap (that dictates what most Eng, Scot, Wales homes pay) predictions. The longer away the less reliable though APRIL DOWN 16% (pretty firm as we're 2/3 way through assessment period) JULY DOWN 7.6% (some crystal ball-gazing) OCT UP 3% (a finger in the air)."

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To help people understand what the data means, Martin explained in a follow up post what this would mean for bills. He said: "To clarify if the predictions come true, for usage that costs £100 now on average you'll pay £84 from April, £77.60 from July, and £79.20 from Oct."

Ofgem's price cap sets how much energy companies can charge customers per Kilowatt of energy used - it is not a cap on energy bills. The figure is based on the usage of a "typical" household" that pays for their energy bill through direct debit. So if you us more energy, then your energy bill will be more expensive. According to Ofgem, there are around 29million people covered by the price cap.

Martin Lewis fans flocked to the Money Saving Experts post for advice on what they should do with their energy. One X user asked the Money Saving Expert whether they should fix their energy bill or remain on the variable. The said: "Would you say we should we still be on the variable as fixing is still not worth it?"

Martin responded to this query by saying: "If predictions are right yes."

Ruby Flanagan