Martin Lewis has issued advice to households ahead of what he has called an "energy bill disaster".
With the cost of living crisis continuing to worsen, energy bills could soar up to an average of £3,300 in the winter. The MoneySavingExpert founder shared guidance on what people can do to mitigate the effect in the latest newsletter for the website.
Lewis said: "The coming winter will be bleak, the cost of living crisis is set to climax in catastrophe, unless there is further intervention. Though the clock is ticking, by the time the new PM is in place, we'll know the new price cap, so rising direct debits will be panicking millions.
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"For now, let me explain what's coming, and try to mitigate it where I can."
The Ofgem price cap refers to how much energy providers are allowed to charge consumers. It is currently at £1,971, covering approximately 22 million homes.
As reported by The Mirror, here is what you need to know according to Martin Lewis.
October price cap predictions have rocketed
According to Lewis, if you currently pay £50 per month, then you will likely be paying £85 a month starting from October. New projections from analysts at Cornwall Insight indicate that the price cap could rise to up to £3,244 in October.
This is an increase from their previous prediction of £3,003 that they projected just two weeks before.
If you are currently paying £150 per month, then you are predicted to have to pay £250 starting October. Meanwhile, those whose current energy bills total £200 are expected to have to pay £330 from October.
Lewis commented: "This price cap is mostly predictable as it is dictated by regulator Ofgem's published algorithm, based mainly on year-ahead wholesale prices. These have spiked in recent weeks, so analysts Cornwall Insight's latest predictions are frightening."
How to know if a fixed rate is right for you
Currently, over 80 per cent of households across the UK are on variable-rate deals. This is primarily due to the fact that the cost of variable-rate deals are limited by the price cap.
However, it is also because there are not many fixed rate options currently on the market. This is especially true if you are looking for a cheaper deal than a variable rate.
Lewis added: "Based on those predictions, over the next year you'll pay 57% more than the current price cap for energy. If you can find a fix at less than that, it's worth considering".
Save cash if you can
Those who are able to save money now before the new price cap comes into effect should do so, says Lewis. He stated: "I know that's a pipe dream for many. Yet for those who do have savings or currently spend less than you earn, putting some aside or even asking for your energy direct debit to rise should ease the winter cash-flow pain.
See if you can cut your energy use
Under variable-rate energy deals, you pay for the amount of energy that you use. Therefore, the more you use, the more you pay.
Lewis says that if you are on one of these deals, then you should cut back on your energy usage wherever possible. One tip from MoneySavingExpert is to fit a water-saving shower head.
These can reduce energy usage by as much as 2 per cent per year, which can really add up in terms of bills. They also use far less water.
Purchasing energy-saving lightbulbs is another tip suggested by MoneySavingExpert, with the LED variety using half the power of the spiral flourescent varieties.
Spending one minute less in the shower could save an astonishing £75 a year in energy costs for a family of four - and £105 in water bills.
Ditching your tumble dryer is another good way to save cash. The Energy Saving Trust thinks you could save £60 a year by air-drying your clothes, if possible.
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