Martin Lewis has revealed that 80 per cent of households in England, Scotland and Wales overpay for their energy.
Speaking on The Martin Lewis Money Show Live on Tuesday night, the Money Saving Expert founder, 52, explained that those on price-capped rates – 80 per cent of people – are overpaying.
The price cap, set by Ofgem, puts a limit on the maximum amount energy suppliers can charge for each unit of gas and electricity you use and a permanent charge if you are on a standard variable tariff.
‘Standard variable tariff’ is the name that suppliers such as British Gas, EDF and Scottish Power use for their capped tariffs.
Martin explained: ‘It’s about: do you have a capped price tariff? If so, you are overpaying and will continue to do so.”
He then revealed to viewers in the audience and at home how to tell if you’re overpaying.
“You are not in the price limit if you are currently on a fixed rate or if you have actively chosen a specialized rate that you are on,” the expert said.
“You have a capped rate if, like 80 percent of households – most of you – are on a standard rate from a company, so they haven’t changed in years or they had a fixed or specialized rate and that ended and You abandoned him and did nothing.
Martin Lewis has revealed that 80 per cent of households in England, Scotland and Wales overpay for their energy.
“If you’re not sure, it’s probably the standard rate,” Martin said.
He added: ‘Now, the energy price cap increased by one per cent a couple of weeks ago, on 1 January. This is in addition to the 10 percent increase in October.
;Almost all companies (it’s called a limit, it’s actually a block) charge the maximum or very close to the maximum. And if you’re on a capped rate, you’re paying the rates that Ofgem sets for you.
‘State of the Nation: Prices went down last winter, went down again, bottomed out in July, then went up in October, then went up again and the current price cap (changes every three months) lasts until April. .
“It is very unlikely that it will drop substantially in July,” concluded the expert.
As such, Martin suggested viewers opt for fixed energy bills, adding: “A solution gives them the peace of mind of being able to lock in a fixed rate.”

Speaking on The Martin Lewis Money Show Live on Tuesday night, the Money Saving Expert founder, 52, explained that those on price-capped rates – 80 per cent of people – are overpaying.
‘The cheapest solutions are now five percent below the current price limit. So if it goes up 5 percent in April, they are ten percent cheaper than the peak price expected for April.
“And you’re insured for 12 to 18 months with no price increases, giving you peace of mind: You’ll know what you’re paying for.”
He explained that most of the cheapest solutions do not require a smart meter and that the cheapest solution and the rate you pay depend on where you live and how much you use.
Meanwhile, last month Mr Martin made an urgent appeal to state pensioners who were born before 1958 to claim a free government payment of £3,900.
The money-saving expert urged state pensioners that they could be entitled to a £3,900 annual boost from the Department for Work and Pensions (DWP), although they must claim the money themselves as it will not arrive automatically.
Martin’s team of money-saving experts said 850,000 state pensioners are hoping to claim a whopping £1.7bn, and urged those born in 1958 or earlier (aged 66 or over) to apply.
To meet the criteria for the £3,900 payment, applicants must be single and have a total weekly income of less than £218, although the ITV and BBC team said those receiving less than £235 could also receive it.
There is also the possibility that couples have the right. For those of retirement age earning a weekly total of less than £333, the chances of billing the cash are high.

The price cap, set by Ofgem, puts a limit on the maximum amount energy suppliers can charge for each unit of gas and electricity you use and with a permanent charge if you are on a standard variable tariff.

‘Standard variable tariff’ is the name suppliers such as British Gas, EDF and Scottish Power use for their capped tariffs.
Similarly, couples earning less than £350 a week also have a good chance of qualifying for the money.
Although the cash won’t arrive automatically and will need to be claimed, according to the money-saving website.
MSE warned: ‘It is NOT automatic, so you MUST claim; that’s how it’s done. You can apply via Gov.uk if you have already claimed your state pension; Otherwise, call the Pensions Service on 0800 99 1234 (or the Northern Ireland Pensions Center on 0808 100 6165). You can go back three months, so the sooner you check, the quicker you’ll benefit.’
Ocean Finance finance expert Fiona Peake said: ‘Older people have been hit hard by the cost of living crisis. As well as immediate financial relief, claiming Pension Credit can help protect you against rising costs.’
He added: ‘With the energy price cap rising once again in early January and food inflation remaining stubbornly high, stating what you’re entitled to is a smart move. If you think you might qualify, or know someone who might, take five minutes to check it out.
‘Many people assume that claiming the Pension Credit is a complicated process or that they will not qualify because they have savings or a small private pension.
‘It’s actually a simple process and the rules are more generous than they seem. It’s always worth checking, even if you only receive a small amount of Pension Credit, it could unlock other support worth thousands of pounds.’