MARTIN Lewis has revealed three reasons why your energy bills might have soared and one easy way to reduce your payments.
The money saving guru said households should check their gas and electricity bills to make sure they’re not being overcharged.
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The energy price cap jumped this month, rising to £1,971 a year for the average bill.
That’s added almost £700 on to millions of families’ annual gas and electricity costs, but the actual amount you’ll be charged depends on your usage.
However, some energy firms have been accused of hiking customer direct debits by more than that amount.
Speaking on ITV’S This Morning today, Martin pointed out that there’s more than one reason why your bills might have gone up.
He heard from a viewer who was concerned that his monthly direct debits will jump from £86 to £251 – much more than the 54% energy price cap rise.
Martin explained that there are three explanations for a sharp spike in direct debit payments.
“If he was on a cheap fix and his cheap fix ended and he’s now moved to the price cap, that would expect the much bigger rise than the 54% price cap rise,” Martin said.
“The second is…he was on the price cap and has moved to a fixed deal as those are more expensive than the price cap.”
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But Martin said there’s a more likely explanation for households on their firm’s standard variable tariff.
“That is that the supplier has taken this opportunity of the increase in price to increase their estimate of how much he will be using in future, possibly because they want to future proof against rises in October.
“If he’s in credit, that should not be happening.”
The MoneySavingExpert founder said customers who are in debt should expect higher direct debit payments but not those in credit.
He said you should ring your supplier to ask them to justify the increase.
“If it doesn’t add up, then tell them you do not accept the direct debit being put up that much and come to a figure that is more appropriate with the 54% rise,” he said.
If you can’t come to an agreement then you can make a formal complaint to the energy ombudsman.
What help is available with energy bills?
If you’re struggling to cope with energy price rises, there is help available.
Contact your energy supplier as a first step, as many of them have hardship funds or can offer other support.
For example, British Gas has a £6million pot of cash to help struggling customers.
It will write off energy debts of up to £750, with 2,450 grants awarded so far.
The average amount paid out to date is £524 per customer, and a further 1,000 payments are set to be made this month.
You should also check that you’re getting all the benefits you’re entitled to.
Make sure you’re not missing out on any extra cash by using an online benefits calculator.
Doing a grants search could help you find cash to pay for gas and electricity bills.
The government announced a support package for households earlier this year.
In total, 80% of families are entitled to a £150 council tax rebate that will be paid from this month – although some people have reported delays.
Everyone will get a £200 energy bill refund in October but this is a loan and will have to be repaid in instalments.
The Household Support Fund, which helps families with the rising cost of living, has been extended.
To find out what support is available in your area, contact your local council.
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