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Liverpool Echo
Liverpool Echo
Business
Gemma Jones

Martin Lewis's 11 day warning to anyone paying energy bills

Martin Lewis has warned energy customers they are set to be hit with an unwelcome price hike from next month.

Millions of UK households are due to be hit with a surprise bill rise on January 1. It comes as Ofgem will update its price cap from this date meaning a discount on bills will change slightly.

Most people were only expecting the prices to increase in April when the energy price guarantee was set to come to an end. So, the January price hike will be an unpleasant surprise for many.

READ MORE: DWP full list of money being paid out at Christmas 2022 to help with bills and food

The Money Saving Expert founder 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."

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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