Martin Lewis discusses the Chase bank app
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As the new price cap took effect this month, many households are already struggling to make ends meet and fear that another rise in October may push them over the edge. Mr Lewis shared that although the price is currently still nearly three times the old run-rate, it could provide opportunity for households to get better fixed deals.
Receiving energy bills have gone from a usual occurrence to an anxiety-inducing event as the cost of living crisis bites into budgets.
The entire market seems to hold devastation for customers with ‘cheap quick deals’ seemingly having gone out of fashion.
Near the end of last year many energy companies went under, revealing just how desperate the market had gotten.
Now, as the Ukrainian crisis continues, we are still yet to see the true impact of the war on energy prices.
This has left many fearing the price cap rise due in October, with families already on the brink of fuel poverty.
In the midst of doom and gloom, Mr Lewis has offered a ray of light at the end of the tunnel in Money Savings Expert’s Money Tips email newsletter.
The newsletter reported that although the rate is still rather high when compared with the old normal, it “may mean for both gas and electricity the October price cap rise will lessen a bit and a few better fixed deals may launch.”
On the Money Saving Expert website there is a section where Britons can find the latest advice for their energy situation.
Currently, the status update notes that as of today April 26, there are no “hot new or existing customer fixes that are worth switching to, so our best guess is most people should stick on the price cap.”
The site also notes that as many fixes won’t come close to what Britons used to consider cheap there is “no point in using a comparison site”.
They also shared some key points Britons should know as they face the current energy bill surge.
The first of which is why their bills have now been increased.
In February, watchdog Ofgem announced that the price cap would rise by 54 percent in April.
This increased a typical bill to £1,971 per year, which Britons are starting to see the impact of now as payments of the new rates start.
Ofgem also cautioned that some suppliers may be increasing direct debit payments over and above what is needed for the price cap rise.
Concerns had been raised to Ofgem earlier this month that Britons were being overcharged or being directed to tariffs that didn’t meet their needs or budget.
Those on direct debit have been advised by Citizens Advice to take monthly meter readings to ensure their bills match up correctly with what they are using.
Anyone who feels their direct debit payment has been unnecessarily increased can ask their supplier to justify the calculations that lead them to the new price.
Citizens Advice shared on their website: “They must explain clearly how they reached the figure they want to charge, and give you the meter readings they used.”
An increase in bills this month is expected but suppliers should have let their customers know about the rise before it happened and those that were not made aware can complain to their supplier.
Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip
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