Money Saving Expert founder Martin Lewis took to Twitter to warn his followers after noticing people were talking about canceling energy debits to “stay in control”.
Image: Ken McKay/ITV/REX/Shutterstock)
Martin Lewis has issued a strong warning to anyone thinking of canceling an energy debit ahead of the April price hike.
The money-saving expert accepted Twitter issue a warning to his followers this morning.
His tweet read: “WARNING! Many are talking about canceling energy direct debits to ‘stay in control’ and only pay when billed.
“Note, however, that this is usually charged at a HIGHER RATE. Price Cap (for someone with typical usage) Pay by Monthly DD £1,971, Prepaid Meter £2,017, Quarterly Bills £2,100.
In response, fans flooded his responses with comments, BirminghamLive reports.
Colleen said: “Can I please ask if I’m on a gas station form. If I top up multiple times before April 1st?
“Will IU be charged at the current rate or after April 1st? Does this make sense?
“Considering buying now to buy my gas at the current price plan?”
Anita asked: “We were on direct debit before our provider went broke.
“However we now purchase British petrol and only seem able to pay quarterly?”
Sarah replied: “I have tried to work this out with BG but they want me to read my own meter and I am currently too disabled to get there or allow anyone in the front door to access as the communal intercom is broken is.”
Natasha asked: “Arghh that doesn’t make sense……surely you pay for what you used, I don’t go to Tesco and part with £75 to shop when I only bought £60 worth of and Tesco on The extra pound sits 15 in their bank until I shop again.”
This applies to standard rate properties that a price cap set by energy regulator Ofgem.
This cap caps how much the average home pays a year for its energy and will rise from £1,277 to £1,971 on April Fool’s Day – a staggering rise of around 54%.
Prepay customers will be hit the hardest, with an increase of £708 from £1,309 to £2,017.
British Gas customers are no exception, and the company said the typical home paying on credit could expect to pay an extra £693 a year from April 1.
This equates to £58 more per month.
Prepaid customers get an increase of £708 (excluding VAT) per year or £59 per month.
The exact amount of the increase depends on your property and your energy consumption.
That’s because the price cap limits the rates a provider can charge for their standard rates.
This includes the base price and the price for each kWh of electricity and gas (the units from which your bill is calculated).
It doesn’t limit your total bill, which changes depending on how much energy you use.
https://www.mirror.co.uk/money/martin-lewis-issues-warning-against-26533188 Martin Lewis warns against canceling the energy direct debit before the price increase