‘Martin Lewis reveals the ‘one thing’ you should do right now as energy bills rise’
Renowned financial expert, Martin Lewis, has shared important advice in response to the recent increase in the energy price cap. Ofgem, the regulator, announced that the energy price cap will rise by 1.2% from £1,717 to £1,738 starting from January 1 for a typical household in England, Scotland, and Wales. This increase comes after Cornwall Insight’s prediction of a 1% decrease to £1,697 proved inaccurate, following a 10% rise in October.
Martin Lewis took to social media to break down the implications of this price cap increase for households. He explained that for every £100 paid currently, it will now cost £101.20, with the rise affecting the unit rates. Lewis also highlighted the new average direct debit rates for electricity and gas. He emphasised that around 80% of households in England, Scotland, and Wales on standard tariffs would be impacted by this change.
Looking ahead, Lewis offered his forecast for future price cap adjustments, suggesting a potential rise in April followed by slight decreases in July and October. Despite these fluctuations, he cautioned that overall, energy costs are expected to be slightly higher than they are currently. To combat these increases, Lewis advised households to take a proactive approach. He recommended locking into fixed tariffs now to save money and shield against future price hikes.
In response to Ofgem’s announcement, Tim Jarvis, the director general of markets at Ofgem, acknowledged the persistent challenge of energy costs for many households. Jarvis encouraged consumers to explore different tariffs available in the market to lower their bills. He stressed the importance of ongoing developments in renewable energy to stabilise household costs amidst global market fluctuations influenced by events such as those in Russia and the Middle East.
Jarvis urged individuals struggling with energy bills to engage with their suppliers for assistance and to actively seek out the most affordable options. With energy costs remaining a pressing concern, he advised consumers to remain vigilant in managing their energy expenditure. As the cost of energy continues to fluctuate due to international market dynamics, Jarvis underlined the significance of transitioning towards sustainable and domestically sourced energy solutions for long-term stability.
In conclusion, with energy prices on the rise, it is crucial for consumers to be proactive in managing their energy expenditure. Following Martin Lewis’s advice to secure fixed tariffs and explore cost-saving opportunities in the market can help households navigate through these price changes effectively. By staying informed, seeking assistance from suppliers, and making informed choices, consumers can better manage their energy costs amidst evolving market conditions.