Money saving expert Martin Lewis has issued urgent advice for members of the public who pay their energy bills by monthly direct debit.
When that date hits, the UK is set to see 'enormous rises in energy bills', with the price cap due to rise 'by an average of 54 percent', Lewis explained, describing the change as 'hideous'.
“Do you pay energy by monthly Direct Debit? 3 Urgent must-knows before 1 April…— Martin Lewis (@MartinSLewis) March 29, 2022
Do meter reading
Why switching from DD costs more
Should you fix right now
Watch the video for full info
For subtitled version go here: https://t.co/Kzl2gXe5Ij pic.twitter.com/adOI7UxwIu
The expert then went on to share his advice for this change, saying: "Before we get to the 1 April, preferably on 31 March, do a meter reading and send it to the company there and then."
Lewis explained this meter reading will allow customers to 'draw a line in the sand' which indicates the energy used by 31 March, meaning the companies should not be allowed to charge a more expensive rate for energy that has not been used.
For those thinking of ditching their direct debits, Lewis stressed that while 'you may gain control, it will cost you more'.
He used average figures to demonstrate why direct debits would be the cheaper option, saying: "If you're on typical usage the price cap from the 1 April for somebody paying by direct debit is £1,971 a year. If you pay by on pre-payment it's £2,017, but of course you'll need a pre-payment meter for that.
"If you want to pay by quarterly bills [...] then the price cap is £2,100, so that means you're paying over six percent more for the same usage than you do by direct debit because there is a discount allowed for direct debit."
To MPs on @CommonsTreasury who interview Chancellor today— Martin Lewis (@MartinSLewis) March 28, 2022
Energy price cap/yr typical use
1 Apr £1,971
1 Oct £2,500-£3,000
Likely annual rise £1,300+
£150 to council tax
Pls ask if he thinks it enough to stop 10m being in fuel poverty?
Lewis went on to note that he can't 'tell you' what to do, but stressed for anyone who can cope with a direct debit that it is 'cheaper to do so'.
The expert's third point addressed whether energy users 'should be fixing right now', using estimates to recommend a fix that is 'no more than around 18 to 20 percent above the April price cap before it is worth contemplating fixing'.
The cheapest open market deal is 'around 40 percent more' than the April price cap, Lewis explained, so 'with the lie of the land as it is today', the expert said it is 'not worth fixing' and said you're better off to 'stay on the April price cap and then if nothing changes before that go on to the new October price cap'.
Lewis went on to stress he does not have 'certainty or surety', admitting his estimates were down to 'crystal ball gazing'.
Featured Image Credit: @MartinSLewis/Twitter/Alamy
- Martin Lewis tells people how to get energy issues fixed as Ombudsman takes too long to fix issue
- Martin Lewis’ urgent advice to UK households days before energy price hike
- Martin Lewis gives good news to anyone earning less than £50,000
- Martin Lewis issues advice on how you can get more money in your take home pay this month