Martin Lewis has warned energy customers that the government's energy price freeze is not a cap on energy bills.
While he initially welcomed the two-year £2,500 price guarantee, the money-saving expert wants to ensure that consumers are not being misguided by the numbers. He stressed that while it's commonly referred to as a price cap, it does not mean there is a standard cap on everyone's energy bills.
Liz Truss' government introduced the energy bill guarantee as a way to try and support struggling households during the cost of living crisis. It replaced the original Ofgem price cap which was due to rise to £3,549 a year - and likely £5,400 a year in January, compared to £1,277 a year last winter.
Mr Lewis took to Twitter to clarify to his followers that the £2,500 figure is based on an average annual bill - and customers could end up paying far more or much less depending on how much energy they use.
In a bid to 'stop confusion', he said: "THERE IS NO £2,500 CAP ON ENERGY BILLS. Instead the new 1 Oct guarantee, like the old caps, limits
- Daily charge (28p gas, 46p elec)
- & Unit rates (10p/kWh gas, 34p/kWh elec)
"So use more, pay more. £2,500 is just what someone with avg use'd pay."
He also clarified that the standing charges and unit rates are the average for Direct Debit payers. Meaning that those on prepayment meters and those who pay in receipt of bills will approximately pay two per cent and nine per cent more respectively, according to Mr Lewis.
With energy prices due to rise from October 1, Mr Lewis has also urged consumers to do a meter reading the day before so you don't get overcharged by your supplier. However, if you're on a smart or prepay meter then you don't need to do a reading, however, you may want to take a picture just in case.
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