Martin Lewis has explained what he thinks households should do next after a huge hike in energy bills was announced today.
Ofgem confirmed those on default tariffs will see an increase of £693 from £1,277 to £1,971 from April 1 - an eye-watering rise of around 54%.
Prepayment customers will be worse hit, with an increase of £708 from £1,309 to £2,017.
The move, which comes off the back of rocketing wholesale gas price rises, will affect some 22 million households.
Before the energy crisis, customers would typically be encouraged to shop around for a cheap deal, instead of rolling on to the price cap.
But speaking on his ITV show live this evening, Martin explained how there is currently no fixed rate on the open market that beats the energy price cap.
He revealed what he predicts could happen next - and said most people should continue to “do nothing” with their energy bills.
The price cap is expected to rise again in October with some experts anticipating another 20% increase if wholesale rates stay as they are now - pushing it above the £2,300 mark, said Martin.
“I’ve done the numbers - I’ve had to make a lot of assumptions, I don’t have a crystal ball,” he explained.
“If we assume that in October, the price cap stays where it is in April, you would have to find a fix that is less than 44% more expensive than where we are right now for it to be worth fixing.
“If we think it’s going to go up in October, as that line [on the graph] shows by 20%, you’d need to find a fix that is now more than 59% more than the price cap today.
“The cheapest fix right now is 68% more than the current price cap - way more than the April 1 price cap, even more than my high end scenario in October
“Of course, anything could happen - but there ain’t no market fix that you should be going for right now.
“Maybe some existing customers in certain circumstances with high or low use might find one in these yellow lines [on the graph] but the message for most people: do nothing. Stick on the price cap. Don’t fix.”
Households that are on the price cap are default tariff customers who are on a standard variable rate (SVR) because they haven’t switched to a fixed deal.
This also applies to those who remain with their new supplier after their previous supplier exited the market - some 30 energy firms have gone under since 2021.
Are you worried about rising energy bills? Let us know: mirror.money.saving@mirror.co.uk
Meanwhile, the MoneySavingExpert also interviewed Chancellor Rishi Sunak today about the government support he announced to help combat rising bills.
Households will get a £200 upfront discount on their energy bills - but it'll need to be paid back at a rate of £40 per year over five years from 2023 to 2027.
Energy suppliers will be loaned the money to do this by the government, and should apply the discount from October.
Millions of Brits across the UK will be eligible for a £150 rebate off their council tax bill this year.
This will be for all households in England that are in council tax bands A, B, C or D - the government says this covers around 80% of all homes.
But Martin warned how this help might not go far enough.
Speaking to the Chancellor, the MoneySavingExpert founder said: "There are clearly two groups of people that you had to help here: one was the most vulnerable and the other are in the squeezed middle for who life is going to be difficult but survivable with these increases.
"Just looking at the most vulnerable for a second, I've been warning about this since last June.
"I have been using the phrase and I don't think this is an exaggeration: some will have to choose whether they freeze or whether they starve. We have seen food bank usage go up.
"Do you believe that we are now in a position in this country where no one will have to choose between heating and starving?"
In response, the Chancellor argued that the government has helped the people in the "most vulnerable situations and on the lowest income" get the most support.
He continued: "I think we have a range of measures in place to help those who need our help.
"Taking a step back, people can judge me and the government by our track record over the last year or two.
"All the facts and figures show that actually that those in the most vulnerable situations and on the lowest income got the most support from the government.
"We made a big difference to their lives and we will continue to do that."
Earlier today, Martin said rising energy costs will be "catastrophic and disastrous for people's bills".
