Martin Lewis ’ MoneySavingExpert website has updated its guidance on whether you should lock into an energy deal now.
It comes after experts at Cornwall Insight said they’re now predicting an even bigger spike to the Ofgem price cap this October.
Analysts now say that energy bills will hit £3,582 a year for the average household from October.
This is up 81% from the current April price cap, which sits at £1,971.
Cornwall Insight said the price cap could then hit £4,266 in January - another rise of 19% - before another increase in April to £4,427.
MoneySavingExpert explained how someone with typical use will be paying around 96% more over the next year for their energy bills compared to now.
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This is based on two months on the current rate, then the following price cap predictions released by Cornwall Insight.
MSE now suggests you should consider fixing into an energy deal if you're offered a one-year fix at no more than 95% above your current price cap tariff.
Those who “very strongly value budgeting certainty” might want to consider fixing at 100% above the price cap tariff, the consumer website said.
At the moment, there are no open-market tariffs that are cheaper than the current price cap.
It is worth speaking to your energy provider to see what deals they have on offer right now - but keep in mind the best rates could be pulled quickly.
The cheapest rates are normally “customer-only” deals which aren’t available on the open market - this means you won’t find details of them online.
MSE flagged the E.on Next: Next Online v18 one-year fix - which is only available to existing customers - as being 78% more than the current price cap (£3,407 a year).
This is up by £110 compared to the v17 tariff, which was set at £3,297 last week - highlighting how quickly prices are changing.
MSE said the cheapest open-market rate available right now is from Utility Warehouse - but you have to take out other products as well.
This means it might not be worth it for all households, and it is harder to work out if you’d be better off as you need to factor in these costs and savings too.
The Utility Warehouse "Green Fixed 34" one-year fix is on average 50% more than the price cap at £2,950 per year for typical use.
To get access to this fix, you will need to take out broadband, SIM-only mobile contract or boiler and home cover with Warehouse.
But a word of warning...
Of course, we don’t know yet exactly how much the October price cap will change by - Ofgem won’t announce this figure until August 26.
Martin has warned that these are his “best-guess” figures based on current estimates, which can change.
The price cap, which covers 24 million households, limits the rates a supplier can charge for each unit of gas and electricity you use.
This means if you use more energy, you'll pay more - use less, and you’ll pay less.
The price cap also sets a maximum for the daily standing charge, which is what you pay to have your home connected to the grid.