Customers at major gas and electricity suppliers including British Gas, EDF Energy, E.On, Scottish Power and Octopus Energy as well as OVO will be handed a boost worth up to £135 this Friday says Martin Lewis.
The money saving expert tonight broke the good news that energy customers will get as much as 8 percent off their bills from July when the new Ofgem price cap is announced this Friday, May 24.
That’s because the price cap affects 90 percent of homes in the UK, with nine in 10 people currently on the variable tariff which is dictated by the price cap.
The assessment period for the next price cap, which takes effect on July 1, is now over and analysts have set their expectations for the price cap.
Current predictions place the price cap at as much as 8 percent cheaper than it currently is, which would mean £135 a year off your energy bills.
The current energy price cap, which took effect on April 1, set the average bill for a typical household at £1,690 a year.
That means 8 percent off the amount would be a £135 saving, but the saving is expected to be at least £92.95, which equals 5.5 percent.
Martin Lewis explained on his BBC Sounds Martin Lewis Podcast: “Price caps last three months so it will be the price cap for July, August and September.
“Cornwall Insight have now done the numbers and they are predicting that the price cap on the 1st of July will drop by an average of 7 percent.
“That means it’s likely to drop between 5.5 percent and 8 percent because there are some other factors in there, but it is very very strongly likely we will see a drop coming in July.
“That’s the good news. The less good news is that the current prediction for October and January are rises.
“October it’s predicted to rise just below 4 percent. January by one percent. We might see the last drop coming at July for now and increases afterwards. Still, to be fair, when you go down 7 percent and add 4 percent on top you’re still less than where you are right now.”