Ofgem Lowers Energy Price Cap 7% From July, Bills Remain 10% Higher Than Last Year

Martin Lewis has criticized Ofgem's announcement of a 7% reduction in the energy price cap, arguing that the stated average annual savings of £129 are misleading because the price cap is reviewed quarterly and individual usage varies widely. He emphasized that the price cap reduction essentially reverses the recent increases seen throughout the year and that energy bills in July will still be about 10% higher than the same period last year. Lewis urged consumers to secure fixed-rate energy deals immediately rather than relying on the variable price cap, as fixed tariffs currently offer savings of up to 18% below the cap. He warned that waiting for the price cap to drop could be detrimental since fixed rates are based on predicted future prices and could protect against potential global economic changes that might increase costs again. Lewis also highlighted that the price cap serves as a backstop rather than an optimal price, encouraging consumers to shop around for better deals to reduce their energy expenses. Overall, he cautioned that while the price cap decrease is welcome, it is not a substantial relief for households struggling with high energy bills.