Martin Lewis has issued a warning over a misleading figure being quoted in the media about energy bill rises. Speaking on his BBC podcast, the money-saving expert said claims of a £200 increase in the price cap are 'nonsense' and based on a misunderstanding of how the mechanism works.
The Ofgem price cap is expected to rise by 13% for the July to September quarter, driven by the Iran conflict's impact on energy markets. However, Lewis stressed that the £200 figure is calculated on an annual basis, while the price cap applies for only three months. 'To quote a £200 a year rise would be foolish, because it only lasts for three months,' he said.
Lewis explained that the three-month period covers summer, when households use about 15% of their annual energy. For a typical household paying £150 a month, the 13% rise would add roughly £30 to £40 over the quarter. 'It is not good, but it is not catastrophic. It is nothing like the Ukraine period,' he added.
Looking ahead, Lewis warned of further uncertainty. Current predictions suggest the price cap could rise again by 4.5% in October and 0.6% in January. Even if the Middle East conflict ends soon, damage to infrastructure and Qatari gas plants means bills may not return to current levels until January.
