Money Saving Expert’s Martin Lewis has pointed out on social media that the Ofgem price cap is no longer expected to rise in October.
He presented a table comparing the previous predictions from three large energy companies and compared them with their most recent ones. Wholesale rates had spiked due to fears that the Israel–Iran conflict could affect energy supplies. With the situation now looking calmer, wholesale rates have come down again, and energy companies have adjusted their predictions accordingly.
The companies now predict on average that the price cap will remain the same in October, compared to a rise of 3.7% in the previous week. Lewis points out, however, that the recent wholesale price spike is now “baked in” to Ofgem’s upcoming calculations. This means substantial further drops in wholesale prices will be needed to trigger a noticeable drop in the October price cap.
Lewis points out the predictions are somewhat unreliable from January, although he adds that:
“…with the cheapest fixes currently around 9% less than the current price cap, they look a very good bet for those on standard (i.e. Price Capped) tariffs if these predictions are right (just ensure low exit penalties so if things did change you could get out).”
This may not seem important during the warm summer months, but it’s a good time to get everything ready for the autumn. On this note, get in touch with Xgas to arrange a boiler service in Wrexham and other places like Chester and Oswestry, so your heating will be running safely and efficiently when it’s needed again.