MONEY saving expert Martin Lewis has encouraged everyone to do a meter reading today before tomorrow’s energy price increase.
Tomorrow will see the energy price cap rise by 54 per cent on global gas prices, impacting millions of people across the UK.
Those paying on a default tariff by direct debit will see an increase of £693, with the cap rising to £1,971 a year. Prepayment customers will see a bigger jump in their prices, rising £708 to £2017.
Speaking on ITV’s Good Morning Britain yesterday, Martin advised people to either submit meter readings today or take a tims-stamped picture of their pre-payment meter and email it to themselves so they had a record of when the reading was taken.
That way, people will be charged on their current rate which ends today for all the energy they have used since their last reading.
By not doing it, people risk being charged for the whole period on the new increased rate which comes into force tomorrow.
He also advised people to stay on direct debit payments to avoid a more than six per cent price increase that comes with paying quarterly bills.
Ofgem, Great Britain’s independent energy regulator, has advised people to contact their energy supplier as soon as possible if they are struggling to pay their bills as they may be eligible for extra help such as payment breaks or debt repayment plans, depending on their circumstances.
Global gas prices have soared over the last six months, with the wholesale price quadrupling in the past year.
Many energy companies have either left the market or gone into special administration as they have been unable to afford to pay electricity and gas to customers for less than they paid for it.
The new price cap mechanism means that from tomorrow energy companies will be able to pass these higher costs on.
They have also suggested that households should look into the Breathing Space Scheme, which will give households time to receive debt advice and find a solution. The scheme lasts for 60 days as long as you remain eligible, during which time all creditors will be informed to stop all collections.
