Martin Lewis has shared a new a new update regarding the energy price cap rise in October.
While the UK Government has announced that it will replace the price cap with an Energy Price Guarantee that will ensure typical UK households pay no more than £2,500, bills will still increase substantially on October 1.
With many people unsure of exactly how much their energy bills are set to rise by, financial expert Martin Lewis has unveiled an online calculator to help households determine the approximate value of their new bills.
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Taking to Twitter, Lewis said: "New Calculator (pls share). How much will you pay under the new Eng, Scot, Wales energy price guarantee from 1 October?
"It varies by region and usage hence the calc. It's only for direct debit for now, as we're still awaiting prepay prices."
He shared a link to a page on the MoneySavingExpert website, which states: "The energy price cap is misnamed – there's no cap on how much you pay.
"The cap is actually on the standing charges and the unit rates for gas and electricity, and this means if you use more energy, you'll pay more.
"Yet the cap is usually quoted as an annual figure, based on a typical amount of energy use (currently £1,971 a year, but rising in October to £2,500 under the energy price guarantee)."
To use the tool, you must input either your annual gas and electricity usage in kWh/year, or your monthly gas and electricity spend.
After then inputting which region of the UK you live in, the tool will inform you of approximately how much you can expect to spend when the new price cap comes into effect.
Use the tool on the MoneySavingExpert website here.
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