Energy bills could rise again in the New Year. Millions of households across the UK are due to be hit with a surprise bill rise on January 1, 2023, according to Money Saving guru Martin Lewis. The consumer champion has issued to warning to bill payers to expect a hike from next month.
As households battling with the cost of living rise, Birmingham Live reported Martin as saying: "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". Ofgem, The Office of Gas and Electricity Markets, will update its price cap from the first day of the new year, January 1, meaning a discount on bills will change slightly.
However, the price hike, while unwelcome, may not be as dramatic as it first sounds for most households. The ITV Good Morning Britain regular says: "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".
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Any price increase is bad news for consumers and, as usual, Martin is doing his best to tackle the issue head on. He said: "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."
In monetary terms, 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. 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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