Martin Lewis has issued an update on whether people should fix their energy tariffs or stick to the price cap.
At the end of March 2022, just before the price cap rose by a staggering 54%, the finance guru advised people against getting a fix, saying: "It's just not worth it. Stick on the price cap."
But a month on, the founder of Money Saving Expert has advised that it may now be worth fixing your tariff for financial security.
READ MORE: Martin Lewis' warning to 500,000 people on minimum wage in UK
The financial expert said his advice is based on the most recent data published by energy market analysis company Cornwall Insight, as reported by Wales Online.
Mr Lewis said the current price cap for someone on duel fuel, typical use is £1,971 a year.
This rose massively at the beginning of the month and will last until October.
Cornwall Insight predicts another rise of 32% in October, taking the price cap for someone with typical use to around £2,600 - which is slightly less than Money Saving Expert initially predicted.
Mr Lewis explained: "As we are half way through the period...there is very little chance that we are going to see prices drop in October. We would need to see a monumental, unprecedented drop in wholesale gas and electricity prices for that to happen."
From April 2023, Martin said the prices are much less certain as we are not yet in the assessment period.
He said: "They think it will drop in April by about 12% from the October price cap, taking someone on typical use to £2,300 - still higher than the current price cap."
He then explained that if you consider all of these predictions, you would expect rates on average to be around 17% higher than they are now.
The MSE founder continued: "On that logic, "If you can find a fix that is no more than 17% higher than the rates you're currently paying [or what you'll pay when your fix ends] then that's worth doing.
"I think a fix does have the merit of price certainty...therefore if you value price certainty I think that is worth factoring in as a premium.
"I would suggest as a rough rule of thumb even though the maths says 17%, if you could find a fix at no more than 25% higher than the current price cap rate and you value price certainty, it is probably worth fixing at that rate.
"It's worth remembering if rates were to drop dramatically in the future and you would be able to fix at a much cheaper rate in the future, then you do pay an early exit penalty.. but that is relatively trivial compared to how much people are paying for gas and electricity today."
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
