TAKE NOTE
Martin Lewis warns energy prices are set to rise before they fall – what it means for your bill in 2023
MARTIN Lewis has warned households that energy bills are set to rise again before they fall.
The founder of MoneySavingExpert.com said the average household bill will rise in April when a bill freeze comes to an end.
1
Under the Energy Price Guarantee (EPG), the amount that households can be charged per unit of gas or electricity is capped.
The average unit rate it 34p per unit of electricity and 10.3p for gas - but this may vary slightly depending on where you live.
This means the typical household will be pay £2,500 a year for their energy bill.
This will rise to £3,000 from April, when the EPG ends.
READ MORE IN MONEY
Households who use more gas and electricity pay more.
Speaking on ITV's Good Morning Britain, Martin Lewis said that wholesale rates at which gas and electricity retailers are buying energy from the suppliers have dropped.
But he said that this doesn't mean customers will see a decrease in their energy bills.
Martin said: "The only chance it will get cheaper is if the Energy Price Cap - which is the price the regulator sets - were to drop below the Energy Price Guarantee."
Most read in Money
Cornwall Insight is predicting that energy bills could drop to just over £2,800 per year for the average household between July and September.
Martin said that while this is lower than the planned £3,000, it is still higher than what the average household is paying now.
He added: "The talk of energy prices coming down - they will go up, and then they will come down.
"But the likelihood is they will still be higher than they are now, unless the wholesale rate continues to fall."
What energy bill help is available?
As part of the Autumn Statement, it was revealed millions on benefits and Universal Credit will receive an extra one-off £900.
Eight million households have already received cost-of-living payments worth up to £650.
Pensioners have also started getting a £300 one-off payment.
The current pensioner cost of living payment is being handed out to millions on a low income.
You qualify under the current rules if you normally get the winter fuel payment, but this could change under the new rules.
The £300 cost of living payment is paid on top of the other winter support.
Struggling families are eligible for the Warm House Discount to help them tackle the cost of living.
There are also plenty of energy grants and schemes open to help you out if you're struggling:
READ MORE SUN STORIES
- British Gas Energy Trust Individuals and Family Fund
- British Gas Energy Trust
- EDF Customer Support Fund
- E.ON and E.ON Next Grants
- Octopus Energy Assist Fund
- OVO Energy
- Scottish Power Hardship Fund
There's also a one-off fuel voucher from your energy supplier if you're on a prepayment meter.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
Topics