Martin Lewis addresses when your energy bills could drop ‘lower than planned’ | Personal Finance | Finance

He continued: “Originally, we were on around three to six months’ worth of delays so when wholesale rates went up, while people thought our rates were going up, they weren’t – they were going up based on what had happened three to six months ago.

“So if you say we’re back to where we were before the start of the Ukraine crisis, which was still far higher wholesale rates than typically – yes. But then we still had to wait three to six months before those rates hit because there is a time lag.

“So, I’m talking about April’s price cap. April’s price cap is the next one, which will be based on wholesale rates from November to February. The April price cap is based on where we are on the average between November to February, and prices have been falling for about a month.”

While wholesale prices remained high in November and December, January has since seen a drop, and the average will be taken over this time period and applied to April’s price cap.

Mr Lewis said: “The truth is that is still likely to be higher than the subsidised energy price guarantee for April to July. But the assumption is the July price cap, based on prices between February, March, and April, is when we will start to feel [a drop]. Because the price cap, which has to be lower than the energy price guarantee, is delayed.

“It’s always been delayed and originally we were feeling rises but they were nowhere near as sharp – that was the big difference that the price cap made, things went up slower. Now they’ve gone up, they’re going to be slower to come down as well.”