Alerting his followers to the news, the Money Saving Expert took to social media to share the analysis from Cornwall Insights.
The energy market consultancy firm has predicted that the Ofgem (Office of Gas and Electricity Markets) energy price cap will rise from £1,971 to £2,980 this coming October.
The energy price cap, limits the rates a supplier can charge for each unit of gas and electricity used, is then predicted to round up to £3,000 in January.
Taking to Twitter, Martin warned: "Just got latest @CornwallInsight price cap predictions. Wholesale prices spiked heavily last week, so they're up a lot.
"Today's price cap: At typical use = £1,971/yr. Prediction Oct - Dec: UP 51% (£2,980/yr typical use). Prediction Jan - Mar: UP 1% (£3,000/yr typical use)."
Oh Shit!— Martin Lewis (@MartinSLewis) June 20, 2022
Just got latest @CornwallInsight price cap predictions. Wholesale prices spiked heavily last week, so they're up a lot
Today's price cap: At typical use = £1,971/yr
Prediction Oct - Dec: UP 51% (£2,980/yr typical use)
Prediction Jan - Mar: UP 1% (£3,000/yr typical use)
He followed up with another tweet:
Oct's price cap is based on energy prices Feb - July so we're already most way thru that, so price falls wouldn't change too much. Tho the Jan price cap would (not that a huge fall's likely)— Martin Lewis (@MartinSLewis) June 20, 2022
Next Apr's cap is predicted to move down 10%, but that's still be far higher than now https://t.co/TXOEvsLu3X
Currently, the energy price cap is up for review twice per year, but Ofgem is pushing for a quarterly renewal, which would mean a price change in January.
Martin had originally discussed the spike in energy prices last week, urging Brits to consider a fixed energy deal that is no more than 35% higher than the current price cap.
WARNING: Wholesale energy prices have spiked over the last week, so it's plausible energy firms will pull the cheapest existing customer fixes & replace with costlier.— Martin Lewis (@MartinSLewis) June 16, 2022
If u are considering fixing, my best guess is go asap. Top tariffs list here https://t.co/43WIOMotUO Pls share
However, since price caps are set to rise, Martin has said that he will be issuing new advice on when people should fix into an energy deal.
Martin Lewis has also been advising followers on the £400 energy bill reduction that households are set to receive this October.
Among a series of new measures announced to help struggling households, the Rishi Sunak revealed every household in the UK would receive £400 off their energy bills in October.
For those concerned that they might have to pay back this £400 grant, Lewis was on-hand to share what people could expect.
Explaining it all on social media, Martin tweeted: "Many still confused about the £200 loan-not-loan. It has gone. Now in October all energy bills will be reduced by a flat £400. This is not repayable. This is a grant. Every household that gets an energy bill will get it".
Breaking down the key announcements, Martin explained that low income households could receive £950 while those who also have disabilities could expect to receive £1,100.
Pensioners are also being given £700 to help with the crisis while those in council bands A to D will receive a payment of £150.