MARTIN LEWIS has issued an urgent warning over fixed energy customers who could pay MORE than the new price cap in October.
Prime Minister Liz Truss last week announced energy bills will be frozen for two years at £2,500 from October.
Martin Lewis has warned what households need to do if they’ve recently fixed onto high rates
They had been due to hit £3,000, but the government claims the new Energy Price Guarantee, which replaces the price cap, will save the average household £1,000.
It doesn’t limit the amount a household will pay, this is based on their energy usage and size of their property.
Concerns still remained for the 6.1 million households on fixed energy tariffs over whether they would be equally compensated.
But the government confirmed this week that all customers, regardless of their payment method and including those on fixed tariffs, will have bills automatically adjusted.
But Martin Lewis warned that some households on fixed deals will STILL be paying more in October.
He said in the latest MoneySavingExpert newsletter that a number of people on fixed deals will see their bills “reduce substantially” but some rates will “still be costlier” than the £2,500 price cap guarantee.
He said this applied to customers who have fixed recently onto very high rates.
Some customers decided to take out fixed deals recently that were much higher than the current price cap in the hope that it would be lower than what it was expected to rise to over the winter months.
This could leave a “very few” number of people on higher rates than the price guarantee, Martin said.
Customers who fixed before the energy crisis started on cheap deals less than £2,500 a year will not get a bill reduction.
Those who fixed three to nine months ago will see their bills reduced to the same level as the new £2,500 price cap guarantee.
While details are being finalised, there’s no way of seeing how much more you might be paying if you fixed onto a very high-rate deal recently.
It is up to energy firms to roll out the change and switch people onto these rates free of charge.
But Martin said British Gas, Ovo Energy, Octopus, EDF, E.on and Shell have agreed customers will be allowed to move onto the price guarantee tariff with no early exit fees until at least November 15.
Martin urged customers to “wait for now” until their supplier gets in touch with more information about how to switch.
What energy bill help is available?
There are plenty of energy grants and schemes open to help you out if you’re struggling.
British Gas has recently confirmed that it’ll pay its most vulnerable customers grants worth £750 to help with sky-high bills.
Ask your supplier what’s on offer and how to apply, or check here:
- British Gas Energy Trust
- Bulb energy fund
- EDF’s energy customer support fund
- E.on’s energy fund
- Npower’s energy fund
- Octopus Energy Octo Assist fund
- Ovo’s debt and energy assistance
- Scottish Power’s hardship fund
There’s also a one-off fuel voucher from your energy supplier if you’re on a prepayment metre.
If you’re in debt there are plenty of services you can take advantage of and they offer free and friendly advice on how to manage debt.
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