Money expert Martin Lewis has warned energy customers that today's Ofgem price cap change is 'not that great' and in fact despite the drop coming on July 1, gas and electricity bills will still be much higher than the same time last year.

took to X this morning following energy regulator confirmation that it will reduce gas and electricity bills by an average of 7% from July 1, or £129. Martin urged customers not to stick on the 'pants cap' though, and to grab a fix as soon as possible because the cap is still higher than fixed deals on the market and still higher than last year.

Speaking on his The Money Show Live on Tuesday, Martin said: "It went up 10% in October, it went up another 1% in January, it went up another 6.4% in April and here is what is predicted to happen on July 1 that they'll announce on Friday.

"DOWN. Stop your oohs [he told the cooing live audience]. Down six to eight percent. Back to where we were in January. Nowhere near where we were last summer, it ain't that great.

"Right, let's be straight, it ain't that great."

Now that the price cap has been confirmed by , Martin took to X to update his followers on the latest today.

Ofgem announced that the price cap will drop as a typical use average figure from £1,849 to £1,720 - a drop of £129, or 7%, from July 1.

The actual unit rates will go down from 27.03p per kWh for electricity to 25.73p, while the electricity standing charge drops from 53.80p per day to 51.37p per day.

The gas unit rates will drop from 6.99p per kWh to 6.33p, while gas standing charges drop from 32.67p per day to 29.82p per day.

Speaking about the confirmed figures, Martin added on Friday: "Today's announcement that the Price Cap is to fall by 7%, is welcome, but nothing to shout home about. All this really does is reverse April's rise so it's back to roughly the cost at the start of the year. Crucially energy bills this July will still be 10% higher than at the same time last year.

"In simple terms it means for every £100 you pay for energy now, in July, August & September you will typically pay roughly £93.00.

"As the cut is on both unit rate and standing charges, this time the impact is pretty uniform for lower and higher users, though those with gas will typically see more of a fall, as its price is falling more than electricity.

"The Cap is still a pants cap. Compare these falls to the cheapest fixes on the market today, which are 18% below the current Cap, showing the Price Cap is a Pants Cap.

"It was only ever meant to be a back-stop tariff for those unable to switch, yet during the energy crisis it effectively became a regulated price, and still today, 65% of homes are on tariffs dictated by the Cap.

"For all but those on pre-payment meters, where sadly there's little choice, I'd urge people to get off the Cap, use a whole-of-market comparison site, like to find their cheapest fix.

"That will instantly cut bills, without any need to wait until July, and if analysts' current Price Cap predictions prove true, would substantially undercut the Cap in every period for the next year."

Martin added that at any point in the last 12 months, grabbing a fix would have saved you money over staying on the price cap.