MARTIN Lewis has responded to Liz Truss’ new energy support package and explained how you can calculate your energy bills.
Under the new Energy Price Guarantee, a typical family will pay no more than £2,500 a year from October, for the next two years.
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Martin Lewis has responded to the news on Twitter and listed 15 summary points following the Prime Minster’s statement.
One of Martin’s points explains how you can calculate what you’ll pay from October.
Right now the energy bill for a typical household that pays by direct debit comes to £1,971 a year.
However, from October 1, the new Energy Price Guarantee comes into force and these households can expect to pay £2,500 over the next year.
This new figure includes the £400 energy bill discount that’ll be paid between October and March next year.
We’ve listed how each energy supplier will pay the discount from next month.
Martin Lewis says that the slight rise to bills represents a 6.5% increase for the typical household.
He said: “To estimate what you’ll pay, over a year, multiply your current energy costs by 6.5%.
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Martin said that the figure you’ll get will include the £400 energy bill discount – so if you want to know how much you’ll pay after the discount is paid make sure to deduct £400 from your final figure.
For example if your monthly direct debit is £150 right now, from October it will rise to £159.75.
If your monthly direct debit is currently £200, from October it will hit £213.
Today, the Prime Minister also announced that:
It remains unclear as to whether the Energy Price Guarantee set at £2,500 will be the same for energy customers who don’t pay by direct debit or who have a prepayment meter.
We will update the story once we have more information on the logistics of the scheme.
What is the Energy Price Guarantee?
Liz Truss has frozen energy bills at £2,500 a year for a period 24 months.
The Energy Price Guarantee will mean a typical family will pay no more than £2,500 a year, saving households £1,000 a year on average.
However, the cap is just on what firms can charge customers.
Your bill could be higher, based on your energy usage. So if you use more, expect to pay more.
However, if you use less energy than the average household, you’ll pay less than £2,500 across the next year.
The £2,500 figure includes the £400 energy bill discount.
This means typical households will only fork out £2,100 of their hard-earned cash across the year.
