Martin Lewis’s team of money saving experts have warned that the price of energy bills is expected to skyrocket next month.
Martin’s team revealed in this week’s Money Saving Expert newsletter that the price of the cheapest deals has increased by 40% from what was available around the same time last year.
Wholesale prices fell last year due to the foreclosure – but Martin’s team said they were shocked at the rate of increase – which has now reached record highs.
READ MORE:Urgent warning from Money Saving Expert to anyone who missed the tax credit deadline
They said: “The speed of change is incredible. Wholesale electricity prices in the UK have reached their highest rates since the market was created in 1990, as the global economic recovery increased demand.
“Gas prices are also at 15-year highs after a cold European winter saw stores run out.”
Martin’s team explained that the majority of homes in the UK are at standard rates – so the bill price is dictated by Ofgem’s price cap.
However, the regulator has sanctioned an increase in the price cap that will be applied on October 1.
The team said: “The cap will increase on average by 12% for those on billed meters and 13% for those on prepaid meters.
“To put that in context, for someone who normally uses today the cap is £ 1,138 / year. From October 1 it will be £ 1,277 / year. So £ 100 per month will be lower. to the average. “
The price cap is set to change again in April – and all the major energy companies have pushed their price hikes to the max.
Martin’s team sadly says there is nothing “really cheap” on the market – but shared some tips on what people can do to minimize the explosive increases in energy bills that most people are facing.
The Liverpool Echo sends out newsletters on a wide range of topics – including our daily newsletter, which now comes out three times a day.
There are others on current affairs, politics, court news, Knowsley, Wirral and arts and culture, as well as Liverpool FC and Everton FC.
Signing up is free and it only takes you a minute to receive the greatest stories, sent straight to your inbox.
How to sign up for an Echo email update
1) Access our newsletter page dedicated to this link.
2) Put your email in the box where indicated
3) Check as many boxes as you want, for each newsletter you want.
4) Tap Save Changes and that’s it!
Money saving expert advice on what to do when energy bills go up
– Use the Cheap Energy Club comparator or the Pick Me A Tariff tool to get an idea of the market as quickly as possible.
News of the tariff increase was announced on August 6 – so anyone comparing energy prices at this point will have received the cheapest tariffs.
– The cap price is likely to rise again in six months – so Martin’s team advises looking at 12-month fixed rate offers on price comparison sites to avoid the potential April hike.
– Anyone with a few months of a cheap rate is advised to stick with it – as the prices have gone up so much that the savings you will make by keeping your current deal will be huge.
– Beware of companies offering prices above the price cap. Martin’s team identifies that companies such as Scottish Power, Octopus, British Gas and SSE have fixed offers above the price cap.
– The team of money saving experts has slammed the moment of the hike because it coincides with the end of the holiday and the increase in universal credit.
People who are expected to be in economic uncertainty can use the emergency measures still in place following the pandemic and could also claim £ 140 on bills through the 2021/22 Warm Home discount.
The money-saving expert also advised anyone who is having trouble getting in touch with their vendor, as they may come up with payment plan revisions, payment interruptions, or discounts – but that’s all decided at case by case.
Want to know the latest news in your area? Enter your postal code on our In Your Area page here