Sat. Sep 23rd, 2023
    Energy Bills Expected to Drop in October: What Constitutes a “Good Deal”?

    Energy bills are set to marginally decrease in October, leading many to wonder what constitutes a “good deal” in the current market. Financial journalist and founder of Money Saving Expert, Martin Lewis, addressed this question during an interview on ITV’s This Morning.

    Lewis explained that the price cap for energy bills is expected to drop by an average of seven percent on October 1st. However, analysts predict that prices will rise again in January, by approximately six percent. Lewis advised viewers to consider securing fixed energy tariffs that are around five percent cheaper than the current price cap, based on predictions from Cornwall Insight.

    The Ofgem price cap for the period from July to September 2023 is set at £2,074 per year for a typical household. After October 1st, the price cap will be reduced to around £1,923, resulting in a yearly saving of approximately £151. Lewis emphasized that if a fixed deal is available for at least five percent less than the price cap, it could be considered a good deal.

    However, Lewis cautioned that the availability of such deals varies, with most of the best options being available only to existing customers. He advised individuals to check with their energy providers to determine if they are eligible for a fixed deal.

    While these predictions offer some insight, Lewis stressed that they are subject to change, and individuals should carefully consider whether a fixed deal is the best option for them. He concluded by emphasizing the importance of price certainty for those seeking stability in their energy bills, but acknowledged that the final decision depends on the individual’s specific circumstances.

    Source: ITV’s This Morning