MARTIN Lewis has warned households to take meter readings at the right time before energy bills rise.
Most billpayers are on a standard tariff that’s subject to the price cap set by regulator Ofgem.
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The price cap will go up from £1,277 to £1,971 – an increase of nearly £700.
Exactly how much your energy bill will rise by will depend on how much energy you use though.
Around 22million households will be hit by higher bills from April 1 onwards.
Speaking on his Martin Lewis Money Show on ITV the money saving expert said everyone who pays their bill by direct debit should put a date in their diary to take a meter reading the day before on 31 March.
He said: “That way you draw a line in the sand that says to your energy firm, I’ve only used this amount at the cheaper rate, don’t start charging me more on the higher rate and estimating I use some of it afterwards.”
More than half of Brits pay energy bills using direct debit, according to the energy regulator Ofgem.
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The amount you pay for energy via direct debit is “smoothed” out over a year.
It means you pay the same amount each month, even when your energy usage changes – you generally use more gas and electric in winter and less in summer.
But the charge for that energy will change on April 1, so taking a reading the day before on March 31 means you – and your energy firm – know exactly how much energy you have used under the lower price.
And you then have a clear date from which the higher prices apply.
Meanwhile, Martin reminded households on prepayment meters they can avoid price hikes for longer by stockpiling energy.
If you have a non-smart prepayment meter, you won’t have to pay the new higher rates until you top up for the first time after April 1.
It means any credit you have will be charged at the old, lower rate – delaying the price rise and saving you money.
However, many prepayment customers are on a low income so it might not be possible for everyone to pay a lump sum towards their bills.
You should also be careful if you chose to stockpile and don’t use more energy than you usually do as this could end up costing you more.
Energy bill help if you’re struggling
There are schemes offered by suppliers, local councils, charities and the government that could also help.
If you’re struggling with energy costs or other bills there are plenty of organisations where you can seek advice for free, including:
You should speak to your energy supplier in the first instance as they have schemes in place to help with bills and arrears, including hardship funds and grants.
Your local council may also be able to help with cash and grants if you are struggling with bills through the Household Support Scheme
The winter fuel payment scheme, where those getting the state pension can get between £100 and £300 to offset the cost of keeping their homes warm.
Low income households can get £25 a week to help with energy bills during the winter thanks to the cold weather payment scheme too.
The warm home discount scheme means you can a £140 payment that goes toward your heating costs but applications are now closed until next year.
Chancellor Rishi Sunak announced a £150 council tax discount for millions of Brits in an attempt to ease the cost of living crisis.
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