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Edinburgh Live
Edinburgh Live
National
James Rodger & Sophie Buchan

Martin Lewis issues 'surprise' energy price hike warning in place from next month

Money Saving Expert founder Martin Lewis has said that millions of people will face a hike in their bills as of next year.

Set to come into force on January 1, energy customers will see the unwelcome rise in bills, with Martin Lewis giving the warning.

Millions of UK households will see the rise happen on January 1 2023, with Martin Lewis stating that it will be a "surprise" for many.

READ MORE: British Gas issue Warm Home Discount scheme warning stating they 'can’t help'

It comes as Ofgem is set to update its price cap from January 1, meaning a discount on bills will change slightly.

Following the news, the financial guru has 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 per cent. 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 one per cent, 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 per cent.

According to Birmingham Live, the pay on receipt of bill customers will see the bill rise to £2,754 from £2,715 - up 1.4 per cent. 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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