During an appearance on Good Morning Britain (GMB) last week, Martin Lewis said that "energy bills are set to rise before they fall" amid the ongoing cost of living crisis.
Discussing the financial issues many of us are facing, the Money Saving Expert founder (MSE) said that people should prepare for their bills to get "higher" before they fall.
Ahead of his popular Martin Lewis Money Show on ITV and STV for those in Scotland, the expert said this should happen around April time.
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However, the guru has said that wholesale energy rates have "dropped rapidly in recent months". Not only that, but this now means energy bills are forecast to be lower in good news for bill payers.
According to MSE, analysts at Cornwall Insight predict the energy price cap to drop pro-rata to £2,200 a year for a typical home from July, below the Government's energy price guarantee (EPG) rate.
MSE add that the following could happen:
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From July: The price cap is predicted to drop to £2,200 a year (not £2,800 as as seen in this video) from July 1 to September 30 2023, meaning bills will drop by 27 per cent to that level and the EPG won't be needed.
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From October: The price cap is predicted to rise by two per cent to £2,240 a year (not £2,835 as seen in this video) from October 1 until December 31 2023, meaning bills will be set at that level and the EPG won't be needed.
It means that almost everyone living in Glasgow the default energy price guarantee tariff unless you are on a fix, according to Martin Lewis.
During the segment all about energy bills, Martin Lewis said that often people look at the the wrong 'day ahead' graphs however this "irrelevant in the UK" and people should instead focus of the 'year ahead' graphs.
He explained that from April until next winter, the energy price guarantee is going up 20 per cent asking people to add a fifth on top of the rate they are currently paying to work out how much they will be charged in a few months time.
This is however, unless the energy price cap goes lower than the energy price guarantee. Whilst the cap currently remains above the price guarantee, we could soon see the drop around summer time in July. And although our bills would be cheaper, it still may be more expensive now.
He explains: "On the current prediction, what's going to happen to your prices is that in April it's going to go up by 20 per cent and then if we are lucky from July it's going to drop a bit but on current predictions it's still going to be more than now."
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