Martin Lewis has warned that a surprise energy bill increase is set to be received by millions UK households on January 1.
Ofgem's price cap will be updated from January 1, which will impact the discount on bills and mean that UK customers could have their bills hiked. The Martin Lewis Money Show star, ITV Good Morning Britain regular and Money Saving Expert founder Martin Lewis has issued a warning over the shock hike, reports Birmingham Live.
He 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.
"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."
Prepayment customers typical bill will go up from £2,559 current annual cost to £2,579, while the pay on receipt of bills will rise from £2,715 to £2,754. These figures are calculated 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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