We’re going to see a serious rise in energy costs from April onwards
Martin Lewis has shared his advice about what to do in response to the significant rise in energy costs.
On Thursday, the energy regulator Ofgem confirmed energy bills will rise by £693 in the UK from April 1 – taking bills from £1,277 to an eye-watering average of £1,971 a year.
Prepayment customers will be even worse off, with an increase of £708 taking bills from £1,309 to an annual cost of £2,017.
With National Insurance set to increase in April and the general cost of living forecast to rise this year, families will be determined to save money in any way possible to brace for what will undoubtedly be a very tough year for millions across the nation.
So, the Money Saving Expert has issued households with some tips about how they should react, as reported by the Mirror.
Before the energy crisis, customers would be encouraged to shop around for a cheap deal, instead of rolling on to the price cap.
However speaking on his ITV show on Thursday night, Martin Lewis said there is currently no fixed rate on the open market that beats the energy price cap.
He revealed what he predicts could happen next and said most people should continue to “do nothing” with their energy bills.
According to Lewis, the price cap is expected to rise again in October, with some experts predicting a further 20 per cent increase if wholesale rates stay the same – potentially pushing it above the £2,300 mark.
He said: “I’ve done the numbers – I’ve had to make a lot of assumptions, I don’t have a crystal ball. If we assume that in October, the price cap stays where it is in April, you would have to find a fix that is less than 44% more expensive than where we are right now for it to be worth fixing.
“If we think it’s going to go up in October, as that line [on the graph] shows by 20%, you’d need to find a fix that is now more than 59% more than the price cap today.
“The cheapest fix right now is 68% more than the current price cap – way more than the April 1 price cap, even more than my high end scenario in October.
“Of course, anything could happen – but there ain’t no market fix that you should be going for right now.
“Maybe some existing customers in certain circumstances with high or low use might find one in these yellow lines [on the graph] but the message for most people: do nothing. Stick on the price cap. Don’t fix.”
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