The MoneySavingExpert founder said the energy price cap should be called the energy ''pants cap'' Martin Lewis has provided advice to people on how to secure the best energy deals. In his podcast, he suggested that the energy price cap should be referred to as the energy "pants cap" instead. His main message is for people to "Get off the price cap.
" The energy price cap, regulated by Ofgem, is adjusted every quarter and sets a maximum limit on how much energy suppliers can charge customers for gas and electricity. This month, customers will experience a rise in energy bills due to a 10% increase in the industry regulator's price cap on energy. Under the new cap, the average annual energy bill will rise to £1,717 for gas and electricity.
An increase of £149 from the current level of £1,568, which has been in place since July. According to Martin, the current price cap is determined by the wholesale rates between the middle of May and the middle of August. Although wholesale rates peaked in August, they have since decreased.
Martin referred to this as a "time-lagged price cap," where the price cap is increasing even though wholesale rates are going down. Martin explains that by taking advantage of the current short-term wholesale rates, customers can benefit from larger savings when switching to new deals. He emphasised that staying on the default tariff means "ripping yourself off," and stated that 85% of people shouldn't be on the price cap.
Martin said energy deal prices .
