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James Rodger & Sonia Sharma

Martin Lewis gives 11-day warning to all households over 'surprise' hike in energy bills

Consumer champion Martin Lewis has warned that householders could be hit with an unwelcome rise in their energy bills on January 1.

Ofgem will update its price cap from January 1, meaning a discount on bills will change slightly. It means customers could have their energy bills increased.

MoneySavingExpert founder Martin said: "The energy price guarantee was meant to guarantee prices until the end of March (when we know the cost people pay will increase by 20%). So it will come as a surprise to many to see prices change in January.

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"For most people the change will be trivial, but it is disappointing to see more substantial increases, with some on prepay meters seeing rises of 1%, which include most of the poorest in society. I have already been in touch with the Department for Business, Energy and Industrial Strategy to ask if this can be looked at, as it does not seem fair.

"The bump up for those who pay in receipt of bills takes the premium for paying that way to more than 10% over direct debit – so while many like the extra control, it's important to be aware that with typical bills from January you'll pay £260 a year for it."

The average typical bill for prepayment customers will go up from a £2,559 current annual cost to £2,579, a rise of 0.8%, reports Birmingham Live. The pay on receipt of bill customers will see the bill rise to £2,754 from £2,715 - up 1.4%. This is based on Ofgem's typical use of 2,900kWh of electricity and 12,000kWh of gas.

Grant Shapps, Secretary of State for Business, Energy and Industrial Strategy, said: "This is marginal for most people." He added: "Changes to bills here are about the way the price cap operates to reflect cost to serve, rather than related to the energy price guarantee."

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