Martin Lewis was back on This Morning today to answer viewer’s questions about the energy crisis.
He appeared alongside hosts Alison Hammond and Dermot O’Leary via video link as together they helped the public, who are struggling with the increased costs of utility bills. Energy prices rose by 54% as the price cap increased on April 1, 2022.
Many people are now worried about being plunged into poverty. Therefore, Money Saving Expert founder Martin is doing everything he can to help those struggling.
Today he issued a dire warning to those households on fixed tariffs. He advised that they would see a large increase in bills when their current rates end. Beth emailed in to the show to ask what she can expect from the energy price increases if she is already on a fixed term tariff.
Martin replied: “If you have a fixed tariff, so you’re locked in at a set rate, then everything you’ve heard about the price going up simply does not effect you. If you have a fixed rate then the amount that you pay – the unit charges for the gas and electricity and the standing charges – are fixed until that ends.”
He went on to warn her, as he said: “Now, almost certainly, when that does end, you’re going to see a very very large increase in what you pay because you’ll be moving to the price cap – the standard tariff. As we know, that went up 54% on Friday and that was on top of a 12% rise last October. If you fixed before then, you’re going to see a very big increase.”
The money expert added: “But, until that happens, you are locked in. The only thing that can change is if the company you are with changes the estimate of how much you are using, because you’ve used more. If you’re in credit that shouldn’t be happening, but if you’re in debt it may well do. That could see how much you pay each month change.
“While you’re on the fixed, the unit rates are locked in until it ends. The only thing that could stop that is the energy going bust.”
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