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Martin Lewis reveals 3 things you MUST do by Friday as energy price cap rises

Money-savings expert Martin Lewis has explained what you need to do now before the energy price cap rises by 54% later this week. Ofgem is raising its price cap this Friday (1 April).

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martin lewis has explained three things you need to do now before the energy price cap rises by 54% later this week.

Ofgem increases its price cap this Friday (April 1st).

For those on a standard plan paying by direct debit, the price cap increases by £693 from £1,277 to £1,971.

Prepaid customers will see a bigger jump as their price cap increases by £708 from £1,309 to £2,017.

Raising the price cap will weigh heavily on household bills, and many families are wondering how to keep costs down.

If you’re worried about your energy bill, the savings expert Founder explained the three things you need to know now.







Martin Lewis has advised households during the energy crisis
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Take a meter reading on March 31st

Martin first explained that when you Read meter reading on 31.03. You can tell your energy supplier exactly how much gas and electricity you used before the price cap increase.

The idea is that you tell your energy supplier that you want all of your energy consumption to be billed at the current rate before April 1st, which is before the price cap increases on April 1st.

Are you afraid to pay your energy bill? Let us know: mirror.money.saving@mirror.co.uk

“They draw a line in the sand that tells them: All the energy I’ve used up to now should be billed at the low rate,” explained Martin.

“Don’t estimate my consumption, I’ll lock it up so you can’t charge me more than what I actually used as of April 1st.”

Canceling your direct debit may cost you more

According to Martin, many households are considering stopping their direct debits because they want more control over how much they pay.

But the MoneySaveExpert warns that this could end up costing you more. It all has to do with how the price cap is calculated.

“With typical usage, the price cap from April 1 – for someone paying by direct debit – is £1,971 per year,” he said.

“If you want to pay with quarterly bills, and that’s what most people who are direct debiting tell me are thinking about, then the price cap is £2,100.

“That means you’re paying over 6% more than direct debit for the same usage because there’s a discount for direct debit.”

Most people should still “do nothing”

Unfortunately, energy costs are expected to continue to rise.

Analysts at Cornwall Insight predict the price cap will rise to around £2,500 a year for someone with normal use in six months from October 1st.

That represents an increase of about 25% — and if the price cap rises to that level, you would need a firm deal no more than about 18% to 20% above April’s price cap to make it worthwhile, according to Martin to repair itself now.

For now, the MSE founder says the cheapest offer on the open market is currently about 40% above April’s price cap — which means staying within the price cap is best for many houses.

How the energy bill crisis is affecting you

“It’s not worth fixing. They are better off sticking with the April price cap and then, if nothing changes before then, move on to the new October price cap,” he said.

“Again, this is my best guess, I have no certainty or certainty here — it’s a bit of crystal ball view.”

Open market deals, of course, relate to fixes available to new customers.

In some rare cases, your current utility may charge you for something below the 18% to 20% threshold mentioned by Martin above.

This happened recently with E.on, where it offered customers a fixed price that matched the price cap – but it sold out within hours.

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https://www.mirror.co.uk/money/martin-lewis-reveals-3-things-26589405 Martin Lewis reveals 3 things you MUST do by Friday as energy price cap rises

Fry Electronics Team

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