Martin Lewis has issued a warning about further energy price increases, which could see some households’ bills rise by an additional 50%.
The founder of moneysavingexpert.com has warned ITV This Morning viewers that the current energy market situation is “horrendous.”
Taking calls from the public over their financial worries and questions, he told viewers: “No one knows [what’s going to happen]. No one knows that with what’s going on in the world, it’s just, it’s awful.”
Lynn, from Kent, called the show to speak with Martin and ask what she should do about her new energy tariff, which had risen from £83 to £189 per month.
Lynn stated that she usually chooses a fixed price option, but she has the option of going variable for £102, and she wanted to know if she was at risk of it rising, and what the best advice was.
According to Wales Online, Martin took on the “big question,” giving Lyne and the This Morning viewers advice on what to do about their energy bills.
“Now, as you may have heard, there is no actual price cap, but I’m going to use the figures for someone based on typical usage,” he explained.
“If you use more, your numbers are higher, you use less, yours are lower in proportion. The current price cap until the end of this month is £1270.
“From the April 1, it’s going up 54% to £1971 – an enormous rise that everyone will be facing.
“So your number, your variable number, I presume, is for now, and that will go up another 50% odd. It will take you to £150 a month.”
Martin added: “The big question is what will happen in October? The October price cap is based on wholesale rates those energy firms paid over six months.
“We are one month through that six months right now, so it is a lot of crystal ball gazing here, and I cannot promise my answer I’m going to give you now is correct. It’s just my best guess.
“But based on where we are currently after the hideous things going on in Ukraine, which mean the wholesale rates have spiked, it’s looking like in October, on top of the 54% rise in April, we will see another rise of around 45 to 50%, taking a typical energy bill to £2,900 a year.
Martin issued a stark warning for the government as he revealed the figure, adding “Clearly, we will need intervention on that more than we have had at the moment.”
He added: “If you look at it just on that basis and that is only one month through the six months assessment period, it could get worse and it could get better. That’s genuinely possible. It could get better. ”
Martin gave Lynn some advice on what to do with the bills, but he cautioned that he couldn’t guarantee the best outcome.
