Martin Lewis explains what the Russia-Ukraine crisis could mean for UK energy bills
The conflict between Russia and Ukraine will also have a direct economic impact around the world, with Martin Lewis explaining what that could mean for UK energy bills
Martin Lewis explained whether the conflict between Ukraine and Russia which means UK households should now amend into an energy deal.
Thousands Russian The army began a “full-scale invasion” of the capital Kyiv today, with rockets and explosions recorded across the city.
But the crisis will also have an economic impact around the world – particularly in the UK, where there are fears that fuel and energy costs will rise.
This is because the prices of these fuels, relative to Brent crude, have risen to more than $100 (£74.29) per barrel when Russia move into Ukraine.
This is the first time Brent crude has cost more than $100 a barrel since 2014. Europe also gets about 40% of its natural gas from Russia.
Above his ITV On Tonight’s Money Show, Martin was asked by an interested viewer what the Russia-Ukraine conflict could mean for his energy bill.
Viewer, known only as Mike, said: “I watch the show weekly and am aware [of] advice on energy supplies should do nothing BUT because of the situation in Ukraine today, gas prices have increased by 40%. Should it be repaired now? “
In response, Martin said it would be “a gamble” to deal with because no one can be sure how volatile energy prices will be this year.
However, if wholesale gas prices continue to remain at the levels reached today, the MoneySavingExpert founder says that we could “see the price cap increase by another 50%, bringing the typical bill to 3,000 pounds a year” in October.
“But we don’t know if that spike will continue,” Martin said.
For those wanting “peace of mind”, Martin suggests you should still only consider a repair if you can find a fixed deal within 60% of the current price cap – push up to 80% for those people are really worried.
“I said before, if you can find a fix within 60% of the current price cap, then it’s probably worth it. Back of the envelope, probably 80% now if you want peace of mind.
“Ultimately, until April we’re on the cheap, from April we’re getting cheaper than any of the fixes – so it’s a gamble. I don’t know and I can’t give you an exact answer”.
“This is a horrible situation first of all for the Ukrainian people and energy is secondary,” he added.
How the energy bill crisis affects you
UK households are bracing for a huge jump in energy bills from April, when price cap will increase by £693 from £1,277 to £1,971.
Prepaid customers will be hit harder, with a £708 increase from £1,309 to £2,017.
The move will affect about 22 million households and follows a 12% increase in October.
A price cap places a limit on how much a supplier can charge for each unit of gas and electricity you use and is reviewed twice a year.
It will affect customers with default tariffs who have not yet switched to a fixed arrangement and who remain with the new supplier after their previous supplier leaves the market.
https://www.mirror.co.uk/money/martin-lewis-explains-what-russia-26324621 Martin Lewis explains what the Russia-Ukraine crisis could mean for UK energy bills