Martin Lewis has revealed the minimum amount households will pay for their energy bills once the new price cap comes into effect.
The financial expert shared the exact amount people will pay a year in bills, even if they do not use any energy, when the energy price cap increases on October 1.
The energy price cap is set by regulator Ofgem and refers to the limit on the maximum amount suppliers can charge for each unit of gas and electricity used by consumers.
READ MORE — Martin Lewis shares 12 things 'everyone needs to know' about the energy price cap
Lewis took to the MoneySavingExpert website to share more information. He revealed 12 things that households must know ahead of the energy price cap increase next month.
One of these was the exact amount households will be charged a year — even if they do not use any energy. According to the MoneySavingExpert co-founder, you will need to pay £273 per year even if you consume no electricity.
He wrote: "The daily standing charges that you pay just for having a bill rose hugely in April, and increased a touch more this time.
"If you have both gas and electricity, the average price cap standing charge is £273 a year before you use owt."
He added: "I have continually pushed back with Ofgem to try and get this changed, but with little success."
Lewis also warned that the price cap will likely rise a further 50 per cent in January, and advised to take predictions for after that "with a pinch of salt".
He continued: "Ofgem sets the price cap based on a published formula, with the main variable being the publicly available year-ahead wholesale energy rates.
"This is why the predictions (we use Cornwall Insight's) close to announcement dates are very accurate. Sadly, currently wholesale gas rates are an unthinkable 16 times the average they were over the prior 10 years.
- 'Weird' mum told to 'get a grip' after slamming neighbour for mail habit
- Mum shares lightbulb hack that saves '£35 to £40 a month' ahead of new energy price cap
- Edinburgh property: Inside the Skye cottage cheaper than a city flat
- Scotland Covid winter booster vaccine explained including who is eligible
- Edinburgh has 'worst traffic in UK' according to new research
