Energy Bills Set to Rise: Martin Lewis Responds to Ofgem's Announcement

Martin Lewis, founder of MoneySavingExpert.com (MSE), has broken his social media silence to address Ofgem's announcement regarding a significant increase in energy bills. Starting in October, the energy price cap for typical households paying by direct debit will rise by £149, bringing the new cap to £1,717. This represents a 10% increase from the current cap of £1,568, translating to an additional £12 on average monthly bills. Lewis highlighted that the majority of this increase is attributed to the unit rate rather than the standing charge, which will disproportionately affect high energy users, particularly those consuming large amounts of gas. In light of this rise, he urged the Labour Government to reconsider its decision to eliminate the Winter Fuel Payment for 10 million pensioners this winter, emphasizing the financial strain this could impose on vulnerable households. While the new rates are lower than last winter's crisis levels, the reduction amounts to only about £100 over the six-month winter period for typical users. Lewis encouraged consumers to take advantage of the current market by switching to cheaper energy deals, noting that some year-long fixes are approximately 7% lower than the upcoming price cap. He advised using comprehensive market comparisons, such as MSE’s Cheap Energy Club, to secure the best rates. Additionally, Lewis welcomed the consultation on reducing standing charges but expressed disappointment that the maximum proposed reduction is only £100 per year, pending further review of the consultation details.