MoneySavingExpert founder Martin Lewis has issued an important update for millions of people who have fixed their energy bills.
Lewis issued his latest advice after new Prime Minister Liz Truss revealed a major plan last week aimed at tackling soaring energy prices.
The Energy Price Guarantee , which will cost up to £150billion, will see the typical household energy bill capped at £2,500 for a two-year period and will be paid for through increasing the national debt.
The Government is also planning a scheme offering "equivalent support" to businesses.
Lewis originally suggested customers on a fixed rate energy bill should consider looking for a new fixed tariff energy deal before October, Wales Online reports .
At the time he explained that no fixed tariffs are meaningfully cheaper than current deals, but they would be if the predicted October hikes in price went ahead.
But now the October bill hikes have been aborted due to the Energy Price Guarantee - so Lewis updated his advice.
Speaking on MoneySavingExpert.com, Lewis said: "Technically the price guarantee for standard tariffs is done as a reduction to the planned October unit rates.
"The Government has said from October 1 the same 4p/kWh gas, and 17p/kWh electricity reduction will apply to many (not all) fixed rates too. That's very roughly in the ballpark of a 30% decrease.
"My latest reading (the rules aren't finalised) is the reduction will only apply to fixes that will be more expensive than the price guarantee.
"Energy providers also tell us that their understanding of the government's rules (so far) is that higher fixed rates should at most only reduce to the level of the new guarantee."
Lewis explained what this was likely to mean for those on different fixed rates.
Those on very cheap fixed-rate deals would pay less than new Enery Price Guarantee rates - so no bill reduction.
People on middle-priced and very expensive fixes will have bills cut if they currently pay more than the Energy Price Guarantee rates.
The Mirror has approached all major energy companies to find out how they will be treating fixed-rate customers.
Lewis added that customers at a higher fixed rate would be allowed to move onto the price guarantee without exit penalties for a certain period of time.
What is the Energy Price Guarantee?
The Energy Price Guarantee is the new Prime Minister Liz Truss ' plan to deal with soaring household bills.
The existing Ofgem energy price cap which was due to be replaced by a higher cap in October will now be overridden by this price guarantee, freezing energy bills at £2,500 until October 2024.
This government guarantee would see families across the UK save around £1,000 a year on their energy bills.
It will be in addition to an automatic £400 energy bill discount that over 29 million households will get next month, paid out in six instalments to further reduce financial strain..
