Martin Lewis has dismissed OFGEM’s claim of average annual household savings of £129 following a 7% price cap drop as ‘totally misleading’.
Speaking on Good Morning Britain on the morning of the announcement (23 May), Lewis explained the figure is based on an annual saving - but the price cap is reviewed every quarter.
“OFGEM quotes this ‘typical use’ figure which is meaningless because nobody is average - almost everyone is above average or below average on their use,” Lewis said.
“You can’t save £129 a year because the price cap only lasts three months and it’ll move again in October.”
The finance guru revealed a ‘far better way’ to calculate savings - based on every £100 spent now, versus in July, when the price cap changes come into effect.
