Martin Lewis issues warning about exact amount YOUR energy bill will rise by in weeks
MARTIN Lewis has issued a warning over the exact amount your energy bill could rise by this winter.
The MoneySavingExpert founder has given a run down of what another rise will mean for household finances.
It comes after experts at Cornwall Insight said that bills are set to soar to around £3,582 in October, before rising even further in to £4,266 in the New Year.
Speaking on Good Morning Britain, Martin said: “Based on the current prediction, which is likely to be right with a very small margin of error, is this – for every £100 direct debit you currently pay, you will be paying £181 and in January £215.”
He described the price hike as “absolutely catastrophic” and criticised the government for “sitting like zombies” and not taking action.
Martin added: “What we’re facing here is a financial emergency that risks lives.”
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Ofgem last week announced changes to how it will calculate the price cap on energy bills going forward.
The energy regulator reviews the energy price cap – which limits how much suppliers can charge customers – every six months.
But this week it announced it will now be reviewed twice as often, meaning bills are likely to soar not just two times, but four times, a year now.
Ofgem will announce the new price cap level on August 26.
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Part of the increase in the forecast is also due to rising wholesale energy prices, experts said.
The cap limits the per unit price of energy suppliers can charge, and means the typical dual fuel bill is currently £1,971 – though you can pay more or less depending on usage.
Earlier this month, Martin Lewis said there will be “exponential problems” if people stop paying their bills and the government doesn’t get a handle on the situation.
The money mogul made the comment when asked on ITV’s Peston show about a growing campaign calling for energy customers to stop paying their bills.
The “Don’t Pay” campaign is calling on households to stop paying bills as suppliers post record profits while an energy crisis continues.
But charities have warned households that there could be “serious consequences” if they stop paying bills.
For example, your supplier could appoint a debt collector to chase your money down.
Or a warrant could be granted which could allow your supplier to enter your home and fit a pre-payment card meter.
Should you fix your energy bills?
Energy bills have been sky-rocketing since last year, but some energy firms have been offering their own customers the chance to fix their bills
Fixed rate energy tariffs give customers bill stability over the agreed period and work to help reduce your chances of short-term bill hikes.
But it is likely you will pay more than the price cap unless your suppliers offers a competitive deal.
As the price cap is currently £1,971 and it’s predicted to go up to £3,582 in October – that’s a 81% rise.
It is then expected to by 19% from that in January.
So if you do want to fix, then as long as your tariff isn’t more than 95%, then it’s worth considering.
As always, you pay for the energy you use – the price cap is just cap on the amount they can charge – not on your bill.
The Sun recently found out that firms have begun pulling their most competitive offers.
Energy companies are withdrawing them perhaps as they are readying for the next cap.
What help can I get to help me with my energy bills?
Unfortunately, there isn’t a lot you can do to escape the rising energy prices.
As the cost of living and inflation rises, everyone is going to be affected.
However, help is available through various schemes and funds.
British Gas have a hardship fund which may mean you could loan up to £1,500 free cash towards your bills.
If you have a pre-payment meter, you could receive a one off fuel voucher. You’ll need to contact your supplier directly to see what’s being offered and whether you could be eligible.
The Household Support Fund will also help support families during the cost of living crisis, which provides you with cash to pay your bills or food costs.
Former chancellor Rishi Sunak revealed earlier this year that every household would receive a £400 discount towards their energy bills.
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Pensioners are also able to receive an extra £300 in November or December.
If you’re struggling with your bills these organisations are here to help:
- National Debtline – 0808 808 4000
- Step Change – 0800 138 1111
- Citizens Advice – 0808 800 9060