Martin Lewis warns soaring energy prices will last a year – here’s how to keep your bills down
MARTIN Lewis has warned UK households that energy bill hikes are not done yet.
The MoneySavingExpert has warned that price rises are likely to continue through next year.
The energy price cap was increase by £139 to £1,277 on October 1, but it only lasts six months.
The most recent price cap increase does not take into account the latest rises in wholesale gas prices.
That means the price cap is set to increase even further at its next review in April.
Martin told that the price increase, along with the end of the Universal Credit uplift, could leave the UK with "a poverty problem like we haven't seen for the last few years".
Experts this week predicted that soaring energy prices could push the average household bill to an eye-watering £2,000.
Jonathan Brearley, chief executive of energy regulator Ofgem, has said the energy price cap is designed to reflects and that it will need to "adjust over time to reflect changes in fuel costs we are seeing today".
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Commentators have estimated that this could mean households will see their bills rocket by another £800.
Cornwall Insight has predicted the price cap will hit £1,660 next year.
Dr Craig Lowrey, senior consultant at Cornwall Insight, said: "With wholesale gas and electricity prices continuing to reach new records, successive supplier exists during September 2021 and a new level for the default tariff cap, the GB energy market remains on edge for fresh volatility and further consolidation."
Already, customers have seen 10 energy providers collapse since August, leaving many unsure how much their bills will be this winter.
The likes of Avro Energy, Utility Point and People's Energy have all gone bust in recent weeks leaving hundreds of thousands of customers out in the cold.
But because prices keep rising, customers may not be best off locking into a new energy bill just yet.
Indeed, comparison site ComparetheMarket even froze its energy switching tool earlier this month because of a lack of good deals, while auto-switching site Look After my Bills also paused its service.
What can I do to lower my energy bills?
There are some simple steps you can take to reduce your energy use.
Buying a cheap draught excluder can help trap warm air in your home, reducing the need to put the heating on.
Using energy efficient appliances can shave money off your annual bill, and making sure your home is well insulated will help retain heat.
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Experts say you should try to resist turning the heating on until the end of October, and turning your thermostat down will also save you money.
If you're struggling to cope with rising costs, you might be eligible for help. The Warm Home Discount scheme could get you £140 off your bills while Cold weather payments can give you £25 a week.
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