Martin Lewis shares important update on energy prices for millions of customers

Money saving expert Martin Lewis has issued an important update on energy bills for millions of British consumers.

Taking to Twitter, Lewis, 50, explained the government has now confirmed that people on fixed rate energy bills will see a reduction on their bills, with two circumstances to consider.

CONFIRMED: From @beisgovuk (attached) that as I said before those on fixed tariffs will see a reduction of 17p/Kwh for elec 4.2p for gas.

1) If their rate is higher than price guarantee
2) But it'll only drop at most to the level of the price guarantee

contd pic.twitter.com/sXUjHyyCvL

— Martin Lewis (@MartinSLewis) September 15, 2022

The money-saving expert wrote: "CONFIRMED: From @beisgovuk (attached) that as I said before those on fixed tariffs will see a reduction of 17p/Kwh for elec 4.2p for gas.

1) If their rate is higher than price guarantee

2) But it'll only drop at most to the level of the price guarantee."

Lewis went on to add that customers don't need to do anything for the new energy bill changes to apply to them, as the changes will be implemented automatically.

Fans of the money saving expert were quick to thank him for clarifying what the new changes mean, but some expressed their frustration that they have been paying more for months after choosing a fixed tariff.

One wrote: "Thanks for that update Martin. Understandable, predictable, but a kick in the gut for those of us who have been largely overpaying for the past few months by trying to do the right thing taking a fixed tariff."

"Thank you for saying it will be automatic!" added another grateful Twitter user. "I wouldn't know where to start!"

"Excellent advice as always. Thank you Martin," wrote a third.

The new changes are the result of Prime Minister Liz Truss introducing an energy bill price cap freeze of £2,500 when it was previously expected to increase to £3,549 in October, as reported by Ofgem in August.

It is expected the government will borrow around £150 billion to account for the difference, and it will apply to homes in England, Scotland and Wales, with a similar scheme expected in Northern Ireland.

Truss said: "This government is moving immediately to introduce a new energy price guarantee that will give people certainty on energy bills, it will curb inflation and boost growth.

"This will save a typical household £1,000 a year. It comes in addition to the £400 energy bills support scheme. This guarantee supersedes the Ofgem price cap and has been agreed with energy retailers."

Truss's decision to fund the cap through borrowing was condemned by the leader of the opposition, Labour's Keir Starmer, who said it should have been funded with increased taxation on the rich.

He said: "The prime minister is opposed to windfall taxes.

"She wants to leave these vast profits on the table with one clear and obvious consequence: the bill will be picked up by working people."