Martin Lewis has warned that energy customers will rise again for the third time in a row next year as he urged anyone not currently on a fix to lock in a cheaper deal instead.
Though energy price inflation has levelled off slightly since the peaks of the crisis, the cost of gas and electricity supply is still high and likely to rise again, possibly twice, in 2025.
Speaking on The Martin Lewis Money Show Live on ITV1 and ITVX, Martin warned that gas and electricity bills will go up again in January, then rise again next July too, based on what’s happening with wholesale industry rates affecting customers with every supplier from British Gas to OVO, EDF, Octopus, E.On and everyone inbetween who is still on the standard variable tarriff (ie not currenltly on a fix).
Martin Lewis said: “The energy price cap is based on wholesale rates over an average three-month period.
“There’s a lot of other factors including provider profit, and that went up over the three-month period so prices have gone up slightly.
“Is it worth fixing for those who haven’t done so?
“In October there was a 10 percent rise from where we were on the price cap. At the time, I was predicting a 1 percent rise, on Friday we got the announcement it will go up a 1.2 percent rise. I’ll take that. I was close enough.
“So that is what we know is happening, what is important really for deciding whether to fix or not is what happens after that.
“So here are the current predictions. In April, and we’re one week into the three-month assessment period for that, it is currently predicted it will go up again by three percent.”
Martin then added that bills will start to drop again in the peak of summer, although this prediction is further out, so less certain.
He added: “When you come to July, they will go down by about 3 percent, and then the October change – and the further out we go the more crystal ball gazing it is at this time – it will stay the same.
“The important thing to look at… If you look at that prediction, across to the very end of 2025 we’re likely to be paying MORE than we are right now if, and it is an if, those predictions are correct.”
Martin then added that the cheapest fix on the market right now is 6 percent less than current prices.
“In reality, you’ll probably save more if the prediction is right because the price is gonna go up after that.”
