MARTIN Lewis has revealed a huge sign whether energy bills will go up next month or not.
Speaking in the latest episode of the Martin Lewis Money Show, he said he’s 99% sure of bills not rising to £3,000 in April.
Martin Lewis has revealed a huge sign on whether energy bills will go up
The Energy Price Guarantee, which is currently set at £2,500, is set to rise by £500 in April.
It determines how much the average household pays for energy bills.
But consumer champion Martin Lewis has said there’s a 99% chance the government will extend the help, so that the cap remains at £2,500 in April.
Chancellor Jeremy Hunt previously said this will not happen.
Speaking on last night’s show, Mr Lewis said: “On Thursday, the energy companies had to tell the pre-payment meter companies what their prices are gonna be.
“And they have not increased the prices in April.
“I also have other sources that tell me prices are not going up.
“And since I did that, The Times has reported sources in government saying prices are going up and the BBC has reported sources in government saying prices are going up.”
Martin then quickly corrected himself to say that prices are NOT going up in April.
He added that he is 99% sure that prices will stay roughly where they are now, before dropping again in July.
Wholesale costs are still falling and it’s been predicted that the cap will fall to £2,100 in July.
What is happening to energy bills?
At the moment, household bills are protected by the energy price guarantee which is £2,500 a year on average.
In April it is due to rise to £3,000.
Households have also been benefiting from a £400 energy rebate, which has been applied to energy bills in six instalments.
The last payment is being made this month, meaning bills will rise by £67 a month at the same time as the energy price guarantee goes up.
However, wholesale energy costs are falling.
Last week, Ofgem revealed the energy price cap will fall to £3,280 a year from £4,279 a year in April due to a drop in wholesale costs.
The price cap was introduced in January 2019 to help protect households from bill rises and it currently changes every three months.
However, it was temporarily replaced by the energy price guarantee in October 2022, as the government wanted to protect households from catastrophic rises in bills.
The energy price guarantee will exist as long as it is more than the price cap.
That’s why Mr Lewis and charities have been calling on the government to postpone the EPG rise in April as they argue households can’t afford the rise due to the ongoing cost of living crisis.
If the support does continue the government will have to spend more than previously planned to support households.
What help is available now?
Millions are currently receiving a £400 energy rebate in six instalments starting from October last year, but the final payment worth £67 will be made this month.
At the moment all households with a domestic electricity meter or direct relationship with their provider receive the discount.
Martin Lewis’ MoneySavingExpert has unveiled a new calculator that can give you an estimation of what your bills might go up to from next month.
There are also loads of schemes your energy supplier could provide, with some granting as much as £1,500.
British Gas, E.ON, Octopus and Ovo all offer grants worth hundreds of pounds.
But don’t worry if you don’t know who your supplier is – you can use Ofgem’s supplier search tool on its website.
Alternatively, just ask your supplier directly what funding is available.
We also did a roundup of energy suppliers offering free credit to hard-up households – read our guide.
It’s also worth checking if you are eligible for benefit payments such as the warm home discount or winter fuel payment.
Some households were not eligible for the energy rebate, for example, if they were not connected to the main gas grid and use alternative fuels.
They can now apply for a £200 discount, via the government’s online portal.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]