Energy bill crisis: Martin Lewis issues 'emergency' advice to UK households
Martin Lewis has warned rising energy prices will force many people to make the devastating choice between heating and eating.
In an ‘energy bills crisis emergency help video’ the Money Saving Expert founder described the energy situation as “catastrophic” as soaring wholesale gas prices are putting an upward pressure on energy bills.
The consumer champion has called for intervention to help household across the UK.
Martin Lewis warned that some people who have previously fixed into cheap energy deals may see their bills surge by as much as 40% when they come off them
Regulator Ofgem regularly sets an energy price cap, which acts as a “backstop” protection for customers on default tariffs and takes into account the underlying costs to supply energy.
From October 1 the price cap will increase to £1,277.
Mr Lewis said it should be remembered that the price cap is based on typical use, so those who use more energy pay more.
He said the cap was based on prices in the run-up to August.
ENERGY BILLS CRISIS EMERGENCY HELP VIDEO: Many in panic about the huge rise in #energybills. I've recorded this quick video to take you through what you need to know and what to do.— Martin Lewis (@MartinSLewis) September 20, 2021
(subtitled version to come later) pic.twitter.com/oXPKslhloq
Martin Lewis issues 'emergency help'amid energy bill crisis
“The situation is catastrophic, in a way we have never seen before,” Martin said.
Mr Lewis continued: “Prices have exploded since then, again. So the price cap will change in six months.”
Mr Lewis suggested that, based on the “current run-rate”, the price cap from April 1 may potentially be as much as over £1,500 a year, based on typical usage.
He continued: “As I never thought I would say, one option is prices have gone up so much the price cap is now not a bad deal for the next six months and you get six months of protection.
“But you could bide your time and cross your fingers and wait and just go onto the price cap when your current deal finishes… because it cannot go up until April 1.
“The second option is to try and lock into a one or two-year fixed rate.
“Now, there are still a couple of tariffs out there where you can lock in for a year or two years at below what the price cap will be on October 1.
“They offer protection if things do not get better.
“Everybody needs to understand you will be paying more for your energy.
“This is not a question of saving money, this is a question of reducing the rise.”
Mr Lewis added: “If you’ve been on a cheap fix and you’re coming off a cheap fix, you could very easily be paying 40% more on your energy bills, even if you do what I’m saying to reduce the rate going up.”
He warned: “There will be many people making the devastating choice between heating and eating.