Martin Lewis warns of rising energy price cap, impacting household bills soon
London: Martin Lewis has shared some concerning news about the energy price cap. He says changes are coming that could affect many households.
The energy price cap sets the maximum price for energy on standard tariffs. Right now, the gas cap is 6.34p per kilowatt hour, and electricity is 24.86p per kilowatt hour. These rates are set until March 31.
However, Lewis warns that predictions for April are not looking good. Energy companies are forecasting increases. EDF expects a 3.3% rise, British Gas predicts 5%, and Eon Next sees a 5.7% increase.
Lewis mentioned on X that the predictions keep climbing. He said, “It’s nearly unthinkable that it’ll drop; it’s going to rise.” The big question is how much it will go up.
Energy consultants Cornwall Insight predict a 3% rise, which would add about £4 to the average monthly bill. This increase is mainly due to global events affecting energy prices.
Factors like the Russia-Ukraine war and past political events have added to the uncertainty. An official announcement about the price cap is expected on February 25, setting rates for April to July.
This news comes as many pensioners face a tough winter without the winter fuel payment. Ofgem’s head, Jonathan Brearley, stated they carefully consider price cap decisions to keep costs low for customers.
He explained that the profit allowed is about £40 from an average bill of £1,740. Without this profit, service improvements and investments would suffer, leading to potential company failures.
