Upload video Video is not available The video will play automatically soon8Cancel Play now GMB: Martin Lewis finds it difficult to speak after eating peanut butter Martin Lewis explained three things you need to do now before the energy price ceiling rises 54% by the end of this week. Ofgem raises the price cap this Friday (April 1st). For those who have a default charge and pay with a flat rate, the price cap is increased by 693 £ from 27 1,277 to 97 1,971. Prepaid customers will see a bigger leap, with their price cap rising by 70 708, from 30 1,309 to 2.0 2,017. Raising the price cap will be a huge blow to household bills, with many families wondering how they can cut costs. If you’re worried about your energy bill, the founder of MoneySavingExpert has explained three things you need to know now. Martin Lewis advises households during the energy crisis ( Picture: ITV)
Have a counter reading on March 31st
Martin first explained that if you measure the meter on March 31, you can tell your power provider exactly how much gas and electricity you used before the price cap was raised.
The idea is to tell your power provider that all energy consumption before April 1st should be charged at the current price, ie before the price cap is raised on April 1st. Worried about paying your energy bill? Let us know: [email protected] “You draw a line in the sand that tells them: all the energy I have used up to this point should be charged at the cheap price,” Martin explained. “Do not count my use, I lock it, so you can not charge me more than the amount I actually used from April 1 onwards.” Martin Lewis Explains Exact Date You Need To Measure Your Energy Meter This Week
Canceling a standing order can cost you more
Many households are considering giving up their direct debits because they want more control over how much they pay, according to Martin. But MoneySavingExpert warned that this could cost you more. It all has to do with how the price ceiling is calculated. “If you use a standard use, the price cap from April 1 – for someone who pays by standing order – is 97 1,971 a year,” he said. “If you want to pay with quarterly bills and this is what most people who give up direct debit tell me they are thinking of doing, then the price cap is 2. 2,100. “This means that you pay more than 6% more for the same use than with a fixed charge, because there is a discount allowed for a fixed charge.” Wage increases, city tax and 9 more major changes coming into force this week
Most people still “do nothing”
Unfortunately, energy bills are expected to continue to rise. Analysts at Cornwall Insight analysts predict that the price cap will rise to around 2.5 2,500 a year for someone in standard use from October 1 in six months. This marks an increase of about 25% – and if the price ceiling rises to this level, then Martin explained that you will need a stable deal that is no more than about 18% to 20% above the April price ceiling for be worth repairing right now. Right now, the founder of MSE says the cheapest open market deal right now is about 40% higher than the April price cap – which means that for many homes, it’s best to stay within the price cap. How the energy bill crisis is affecting you “It’s not worth fixing. It’s better to stay at the April price cap and then, if nothing changes before that, move on to the new October price cap,” he said. “Again, this is my best guess, I have no certainty here – it’s a bit of a crystal ball look.” Of course, open market agreements refer to corrections that are available to new customers. In some rare cases, your current power provider may deduct something that is below the 18% to 20% threshold mentioned by Martin above. This happened recently with E.on where he offered customers a fixed deal that was the same price as the price cap – but ran out within hours. read more Ten simple exchanges that could save you hundreds as prices rise due to the cost of living crisis read more Complete list of standing energy bill charges rising from April – check your area
