Martin Lewis has issued an update to his advice regarding whether people should fix their energy tariff or stick to the price cap after it increased by 54% in April.
Back in March, he warned consumers against getting a fix, stating: "It's just not worth it. Stick on the price cap."
However, the financial expert is now advising that it may be beneficial fixing your tariff in the interest of financial security.
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Lewis stated that his advice was based on new figures released by energy market analysis company Cornwall Insight.
As reported by WalesOnline, he said: "The current price cap for someone on duel fuel, typical use is £1,971 a year. That went up massively on April 1 and that's where it sits right now.
"That will last until the beginning of October and the October price cap is based primarily on wholesale rates that energy firms pay between the start of February and the end of July."
"That means we do have a little bit more certainty [now] because things are solidifying from where they were [a few weeks earlier] on what's likely to happen in October. [Cornwall Insight is] currently saying in October that there is going to be another rise of 32%, taking the price cap for someone with typical use to around £2,600."
He continued: "That is slightly less than we predicted it to be. As we are half way through the period...there is very little chance that we are going to see prices drop in October. We would need to see a monumental, unprecedented drop in wholesale gas and electricity prices for that to happen."
Looking ahead to next April, Lewis stated that prices are uncertain as the assessment period has not yet begun — though Cornwall Insight has predicted they may drop from the October price cap.
Lewis added: "They think it will drop in April by about 12% from the October price cap, taking someone on typical use to £2,300 - still higher than the current price cap."
Taking into account all of the currently available data, he said that average rates could be expected to be around 17% higher than they are at the moment.
"On that logic," he continued, "if you can find a fix that is no more than 17% higher than the rates you're currently paying [or what you'll pay when your fix ends] then that's worth doing.
"I think a fix does have the merit of price certainty...therefore if you value price certainty I think that is worth factoring in as a premium.
"I would suggest as a rough rule of thumb even though the maths says 17%, if you could find a fix at no more than 25% higher than the current price cap rate and you value price certainty, it is probably worth fixing at that rate.
"It's worth remembering if rates were to drop dramatically in the future and you would be able to fix at a much cheaper rate in the future, then you do pay an early exit penalty.. but that is relatively trivial compared to how much people are paying for gas and electricity today."
