Martin Lewis Show – Money expert confirms way to slash rise in direct debit on energy bills
MONEY saving expert Martin Lewis has revealed how to have your direct debit on your energy bills slashed this winter.
On tonight’s episode of The Martin Lewis Money Show on ITV, the personal finance guru told viewers that they have a right under energy companies’ licencing agreements to have their payment reduced if the increase is too high.
He advised struggling bill payers to take regular meter readings and use an online direct debit calculator to estimate what they should be paying based on usage.
The increase should be reportedly about double what you were paying last year so if it is much beyond that, especially while you are in credit, Lewis urged viewers to “politely” call their energy companies to query it.
He added that if the company cannot justify the rise, they are bound by their license to reduce it.
Under the Government’s energy price guarantee, homes with average energy usage should have an annual bill of around £2,500.
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However, as Lewis reminded viewers, this is not a cap on total cost but on unit price so those who use more will pay more.
Speaking earlier on ITV’s Good Morning Britain, Martin said the earlier than expected end to the Energy Price Guarantee will leave many facing higher costs.
Martin said that he “assumes in April, that we’ll go back to the old energy price cap methodology set by Ofgem and based on wholesale prices.”
The Government has said the blanket bill freeze will instead be replaced by more targeted support to help the most hard-up households.
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The exact help has not yet been decided and new Chancellor Jeremy Hunt has said a review by the Treasury will be launched.
This could mean that households on the lowest incomes may be better protected from a bill shock next April.
Martin said that if the original price cap returns, the average household energy bill could rise by over 70% in the spring.
New predictions by experts at Cornwall Insight suggest that bills will rise from £2,500 to £4,350 a year from April 2023 without the freeze in place.
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But other forecasts suggest that the average bill could be even higher from next spring.
Consultancy firm Auxilione forecasts that average bills could hit £5,078 and RBC Capital Markets predicts £4,684 a year.