MARTIN Lewis has issued an energy bill warning to households before costs drop this summer.
The regulator Ofgem is expected to announce a £446 drop to its energy price cap tomorrow.
1
Consultancy firm Cornwall Insight predicts the price cap will fall to £2,054 a year, based on falling wholesale energy prices.
MoneySavingExpert (MSE) founder Martin Lewis has explained exactly how this change will affect household energy bills.
He warned that warned that the lower cap is unlikely to provide much relief to households that struggled to pay their bills in winter.
Writing in the latest MSE weekly newsletter, the consumer expert said this winter’s energy bills are likely to be similar to last year’s.
This is because households will no longer get the governments £400 energy bill help.
The monthly £66-67 energy rebate ended in March and Martin says a drop to the price cap is unlikely to make up for this support.
He wrote: “Lower users will fare worst, as the £66 was proportionately a bigger reduction on their bills.”
Martin also added that it unlikely that the more government support for middle income households is unlikely.
Most read in Money
The price cap has rocketed from £1,162 a year for a typical household in August 2021 to its current level of £3,280.
But households have been partly shielded from the most recent rise by the government’s Energy Price Guarantee (EPG), which limits annual energy costs to £2,500 for the average household.
The cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will pay more.
Plus, energy bills are also still about £1,000 higher compared to 2021.
But from July, the government will no longer subsidise energy bills.
Finally, Martin said high standing charges are likely to remain.
Standing charges are put on your bill even if you don’t use any energy, as they represent the cost of supplying your home.
It means that changing your energy use won’t affect this part of your bill, unlike the unit rate.
The typical household standing charge is £299.59.
It is likely that just the unit rate – the price you pay per unit of gas and electric used in your home – will drop tomorrow, while the standing charge is expected to remain the same.
What energy bill help is available?
Energy suppliers also offer plenty of energy grants and schemes to help you out if you’re struggling.
Here’s a list of schemes open right now:
- British Gas Energy Trust Individuals and Family Fund
- British Gas Energy Trust
- EDF Customer Support Fund
- E.ON and E.ON Next Grants
- Octopus Energy Assist Fund
- OVO Energy
- Scottish Power Hardship Fund
There’s a one-off fuel voucher from your energy supplier if you’re on a prepayment meter.
Councils are also dishing out hundreds of pounds to hard-up families through the Household Support Fund.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
