Martin Lewis explains whether now is a ‘good time to fix’ the energy tariff as the cheapest deal is 9% below the price cap

When asked if it was worth waiting until July for it to drop because the price cap would drop, the money-saving expert explained that the question is often “based on confusion.”

The energy price cap will change in July, but this only affects the company’s standard variable tariff; this does not affect repairs as they are not limited.

He said: “The rate you can fix depends on how cheaply the retail energy companies can buy power at the time they offer the fix. We have no idea what that will be in July. It might be cheaper than now, it might be more expensive – it’s a drop in the price ceiling with virtually no impact;

“Of course, when the Price Cap moves, the difference between its price and the repair price changes (and companies can factor that into the margins of their pricing decisions, how cheap they have to be to win market share).

“Remember, though, that you’re fixing for a year (or more) and each price cap period only lasts three months. So the current price is only a quarter of the decision anyway.

“So we’re trying to base our assessment of whether you’re going to save on Cornwall Insight’s predictions for the coming year. So if you’re looking to fix, as the spread looks decent now, it’s a decent bet at the moment.”

Even at the price cap, the cost people pay depends on the region and payment method.

Since there are no changes in fixed fees and the price drop only applies to unit prices, higher users will save relatively more than lower users.

From July, the top price will fall by seven per cent, so that the current £100 will cost £93.

The cap price is forecast to rise by 12 per cent from October, so £100 would now cost £104.

From January 2025, the MSE team predicts the price cap will remain unchanged so £100 now would cost £104 then.

The projected average over the next 12 months is two percent higher than now, which means it could be the perfect time for some to make repairs.

This means some people would pay £1,427 for average use over the year if they fix now, ID prices fall to £1,756 in October according to current predictions, people could save £329 on the above price.

The cheapest independent energy repairs, according to MSE:

It is the cheapest Ecotricity Green one year repair. This has a limited supply as only 2000 switches are available. That is for:

• New and existing customers
• Dual fuel / electricity only / gas only
• Monthly direct debit only
• It is necessary to have/apply for a smart meter

That deal is an average of nine percent below the price ceiling.

It’s next Octopus 12 Month Patch May 24 v3 for new and existing dual fuel or electric only customers

This offer does not require a smart meter and is an average of seven percent lower than the price cap.

This Energy 1 year fixed is for:

• New and existing customers
• Dual fuel or electricity only
• Monthly direct debit only
• It is necessary to have/apply for a smart meter

That is an average of five percent less.

EDF Essentials 1 year June 25 repair is for:

• New and existing customers
• Dual fuel or electricity only
• Monthly Direct Debit / Cash / Check or

On subscription, if someone has a smart meter, it is on average three percent less than the upper limit.

Not a fix:
E.on Next Pledge 1yr trackr is for:

• New and existing customers
• Dual fuel or electricity only
• Monthly direct debit only
• It is necessary to have/apply for a smart meter

This deal tracks three percent below the price cap, so if the cap drops, it will be cheaper too.

It’s a capped fare and can be a good option if you’re not sure what to do.