Martin Lewis has explained the way you could save money on energy bills with a fixed rate tariff - but warned it was a risk.
The Money Saving Expert star was answering questions about energy bills on ITV's This Morning today, which was hosted by Phillip Schofield and Holly Willoughby, when Lynn called into the show to ask Martin whether she should go with a variable rate or a fixed rate in the coming months amid news of the energy price cap increasing.
"I've just received details of my new tariff and if I fix like I usually do, the price will have gone from £83 a month to £189 a month. I've got the choice of going variable that cost will be £102, but does variable mean it can change from month to month?" she explained.
Martin went on to answer her question, running viewers through the energy price caps and the differences between the rates.
"Let me take you and everybody else through this, this is a big question I get so I'm going to try and take it slow. Now you heard before, there's no actual price cap, but I'm going to use the figures for someone on typical usage now," he said.
"The current price cap until the end of this month is £1270. From the 1st of April, it's going up 54 per cent to £1970, an enormous rise everyone will be facing. Your variable number, I assume, is for now and will go up another 50 per cent odd and so will take you to £150 a month. The big question is what will happen in October."
He added: "The October price cap is based on wholesale rates those energy firms pay over six months.
"We are one month through that six months now so it's a lot of crystal ball gazing right now and I cannot promise my answer I'm going to give you now is correct, it's just my best guess. But based on where we are currently, after the hideous things having gone on in Ukraine, which means wholesale rates have spiked. It's looking like in October, on top of the 54 per cent rise in April, we will see another rise of around 45 to 50 per cent, taking a typical energy bill to £2,900 a year."
However, Martin warned it was a risk - but there was a way you could save money on your energy bills.
"But if you look on it just on that basis, and that's only one month into the sixth month assessment period, it could get worse and it could get better. But based on that right now, if you can find a fixed deal for a year or longer that is no more than 25 per cent above the April price cap, then I would look at fixing if you want price certainty," he added.
"I can't promise it'll be the best outcome. If not, I would stay where you are and stay on the current price cap."
However, he warned that most companies weren't able to offer this through energy comparison sites, and you would usually have to rely on your energy supplier offering you a special rate as an existing customer.
