Martin Lewis reveals real energy bill savings in withering OFGEM price cap assessment
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00:00Well, yeah, look, the fall is welcome, but it's nothing to write home about. Let's remember it went up 10% in October. It went up 1% in January. It went up 6% in April. It's now going down 7%. That puts us back to where we were at the start of the year. But this July, August and September, you're still going to be paying 10% more for energy than you did last July, August and September.
00:24Now, one thing, Kate, you will forgive me. I hate the quoting of that £129 figure for saving. It's a totally misleading figure. I've just had quite a go on a radio station about someone saying it.
00:37I'll brace myself, Martin. I'll brace myself.
00:40It's all right. Look, it's important people understand why. Ofgem, for some bizarre reason, quotes this typical use figure, which is meaningless because nobody is actually average. Almost everyone is above average or below average on their use.
00:53But more importantly, the price cap only lasts three months. So to say you will save £129 a year, you can't save £129 a year because the price cap only lasts three months and it will move again in October.
01:06A far better way to explain to people what's happening is for every £100 you spend now on energy, you will on average be spending £93 from July onwards until the end of September.
01:20I can be slightly more detailed. What's actually happening is the standing charge for electricity is down 4.5%, the unit rate down 4.8%, the gas standing charge down 8.7%, the unit rate down 8.4%.
01:34So what it actually means is if you use gas and electricity, your fall will probably be slightly more than 7%.
01:40If you only have electricity, your fall will be slightly less than 7%.
01:43If you only have electricity with electricity, your pass and electricity is there a day for now and you will be up to 7%.
01:44If you only have electricity with electricity, your volcano will be slightly elevated at 7%.
01:44If you only have electricity, your joystick will be cerca of 7%.