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Levi Winchester & Aaron Morris

Martin Lewis reveals you'll be paying hundreds for energy this winter - even if you use none

Money wizard Martin Lewis has revealed the exact amount that all households will pay for energy this winter, regardless as to whether they use any fuel at all.

The MoneySavingExpert explained that everyone is required to pay a standing charge on their energy, which covers the cost of being connected to the grid.

This charge is paid regardless of how much energy you consume, and is also issued even if someone restricts their usage completely.

Read more: Martin Lewis explains the cheapest way to pay your energy bill - as Ofgem price cap set to soar to £3,549

The Mirror reports that speaking on ITV's Good Morning Britain today, the financial guru broke down exactly how much the charge is climbing per year as Ofgem widens their price cap next month. He said: “The standing charge means you pay a daily amount for gas and a daily amount for electricity, even if you don’t use it.

“From October, if you have a gas and electricity meter on direct debit, you’re paying £273 a year even if you use no energy, which is a moral hazard...Even if you try to cut your energy costs, the lower you go down, the less of an impact using less energy has for you.”

As it stands, the average daily standing charge for gas comes in a 27.22p, but this will rise to 28.49p in October. Meanwhile, the average daily standing charge for electricity is 45.34p, rising to 46.36p.

Ofgem last week confirmed its price cap - which is how much energy companies can charge you per unit rate of gas and electricity - will rise to £3,549 a year on October 1. This is for those on default tariffs paying by direct debit and marks a rise of £1,578 - or 80% - from its current level of £1,971.

For those paying by prepayment meter - typically vulnerable households or those struggling to pay for their energy - there is a bigger jump from £2,017 to £3,608. Standard credit customers - so where you pay once you've received your bill - will see their price cap rise from £2,100 to £3,764.

Approximately 24 million households are covered by the energy price cap, including four million on prepayment meters. The huge rise in the price cap will add more pressure on to families already struggling with the cost of living crisis.

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