Martin Lewis is back and this time he’s brought a completely different warning to his usual stance on gas and electricity fixes.
Speaking on the latest episode of ITV1’s The Martin Lewis Money Show Live, also available on ITVX, Martin Lewis outlined how the price of gas and electricity is set to change over the coming 12 months.
Normally, we’d be looking at sharp price rises, especially in the last couple of years of ever surging price caps for both gas and electricity.
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But today, speaking on the January 23 edition of his live ITV show, Martin advised the exact opposite.
Effectively, prices are being forecast by analysts Cornwall Insight to drop over the next 12 months by as much as 16.5%, for an average reduction of 12.5% over the next year.
Sadly, companies such as British Gas and EDF are only offering between 7-9% fixes on gas and electric, so there is no reason to fix right now as you’ll probably end up paying more than the price cap within the next year.
(Image: ITVX)
Martin said: “When we get to July, we’re expecting 8% down. They are still saying up 3% when we get to October, but because of the big drop earlier that is still 20% less than the current rates.
“So the prediction right now is next winter will be 20% cheaper, the cheapest winter for a good few years.
“So what we have to look at when we come to fixing is, if this prediction is right, when you average it over the next year with seasonal adjustments, the calculations I’ve done say we will be paying on average 12.5% less over the next year than we do right now.
“So to want to fix you would want it to be around 12.5% less and there are no fixes like that.
“This is 12.5% if you do nothing.
“So unless you really want surety of what you’re going to pay, it isn’t worth fixing.
“So my best guess, if Cornwall Insight are right, is that it isn’t worth fixing, unless you absolutely value price certainty, but generally it isn’t.”
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