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Martin Lewis explains the energy price guarantee in the UK, what consumers can expect to happen to energy prices in April 2023 and how wholesale prices will affect this.

鈥淭he current energy price guarantee on typical use is 拢2,500 a year. From April that will rise to 拢3,000 a year - unless the underlying price cap drops below it,鈥� he says, noting that 鈥渙f course, nobody is really on typical usage鈥� but it makes it easy to explain鈥�.

鈥淚f wholesale prices were to come down and the price cap is reassessed on a three-monthly basis so that the price cap were lower than the energy price guarantee, the rates that we pay would drop,鈥� says Martin.

He then uses the latest analysis from energy market intelligence company Cornwall Insight, to predict what might happen to the current energy prices.

鈥滱t the moment we're looking like we stay on the price guarantee until April when it goes up by 20%. We then stay on that until June and then, if wholesale prices stay where they are right now, in June we will see drops of a little less than 10% and we will move back on to the price cap rates,鈥� says Martin.

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