Martin Lewis answered the nation’s burning questions about the ongoing energy crisis tonight as viewers had the opportunity to seek advice on their financial concerns.
The money-saving expert turned today’s episode of his ITV money show into a “Question and Answer on Help with the Energy Crisis,” inviting viewers to submit their questions via social media before the 8:30 pm broadcast.
Millions of consumers have seen their suppliers collapse in the past few weeks after the energy sector was hit by rising global wholesale gas prices – more companies are set to follow.
And when prices skyrocket, consumers may be tempted to leave their supplier in search of a cheaper, fixed rate. But tonight Martin begged people to avoid that.
Martin said, “Don’t do anything, do nothing, energy prices are rising, energy companies are falling. The cheapest fixes cost £ 500 a year more than a month ago. Shocking.
“People panic. Don’t do anything. Inaction is the best action now.”
Martin explained the reasons for the rising prices, the disappearance of cheap fixed tariffs and what the price cap really means: “The wholesale price for gas is the price that companies pay and in the UK much of our electricity is heated by gas – it also hits the price of electricity , normally it was around 50p / therm, you will see it has exploded in the past few months – it’s way over five times the normal amount now and that’s hideous.
“On October 1st, the price cap rose 12%, or 13% for the prepaid people. That cap was based on wholesale prices between February and July, and we could see it was going up then – we thought it was big.” then, but that is nothing compared to August through January, on which the next upper limit depends on April 1st. As you will see, there was an explosion during that time. “
He warned that the price cap will rise by 30% on April 1st.
“That means an increase in costs of around £ 500 per year compared to last year,” he said.
“There would have to be an enormous upheaval so that there is not an enormous increase.”
He also reiterated the earlier mantra “do nothing”, warning that there are no cheap solutions and that the best thing for consumers is to keep paying the price cap.
“In terms of the cheapest fixes, you could commit to typical usage for about £ 800 a year about a year ago,” he said.
“If you get this deal now, you’re going straight to the price cap of £ 1,277 – a 50% increase in costs – that’s terrible. BUT if you went for the cheapest solution out there now, £ 1,700 a year – more than that Double your costs.
“Two weeks ago I had alternative solutions, now I have no alternative solutions. The answer is that there is nothing sensibly cheaper than the price cap, there are no fixes near the price cap. The answer for most people is, nothing to do and keep going the price cap. “
The Martin Lewis Money Show runs every Thursday at 8:30 p.m. on ITV.
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