Financial guru Martin Lewis is warning people not to cancel their energy direct debits ahead of the new price cap.
Ofgem announced that the price cap will rise 54 per cent on April 1, forcing the average household bill up - on Direct Debit - by £693 a year.
Many have turned the the Money Saving Expert for advice as people worry they will be unable to make ends meet as the price of energy and rate of inflation are the highest we've seen in years.
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As energy bills are set to soar, many question whether or not they should cancel their Direct Debit and switch to Pay As You Go - also known as prepayment in a bid to 'take control' and 'only pay for what they use'. However, Martin warns that you could end up paying more in the long run as those on prepayment meters will see an average rise of £708 to their yearly bill.
Speaking in a video he posted on social media, Martin pointed out that there are discounts given to those who pay Direct Debit.
Martin said: "If you're on typical usage, the price cap from 1 April - for somebody paying by direct debit - is £1,971 a year. If you want to pay by quarterly bills, and that's what most people ditching direct debit tell me they're thinking of doing, then the price cap is £2,100."
He adds: "While you may have more control in the short term, over the longer period, ditching monthly Direct Debit means you will pay more for your energy - about six per cent more. Taking that increase to whatever it was at 54 per cent to well over a 60 per cent increase.
"I can't tell you what to do, but if you can cope with the Direct Debit. It is cheaper to do so."
March 31 has been nicknamed 'Meter reading day' as Martin Lewis is urging everyone to submit a meter reading before April 1 to "draw a line in the sand".
That way you know that all energy you've used up till now should be paid at the current rate - before the price hike. He also advices people to take a a photo as proof.
