Martin Lewis reveals 'one thing' to do after energy price rise announced

The MoneySavingExpert founder Martin Lewis has given advice in the wake of an energy price cap increase. Ofgem's energy price cap will rise by 1.2% from £1,717 to £1,738 from January 1 for a typical household in England, Scotland and Wales, the regulator announced today.

Cornwall Insight had previously predicted a 1% fall to £1,697, but said this was now no longer the case, coming as a blow after prices rose by 10% in October. Presenter Mr Lewis has broken down what this will mean to households.

He posted on X, formerly known as Twitter: "As long predicted, it's now official Ofgem's Price Cap rises 1.2% from 1 January (on top of 1 Oct's 10% rise). So for every £100 paid now, it'll cost £101.20. The rise is via increasing the unit rates."

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And the expert added that the new average direct debit rates are as follows: "[Electricity]: Standing charge 61p/day | Unit rate 24.9p/kwH. Gas: Standing charge 31.7p/day | Unit rate 6.3p/kwH (though it varies by region and payment method). This hits the 80% of Eng, Scot & Wales homes who are on standard (non fixed/special) tariffs." Sign up for the North Wales Live newsletter sent twice daily to your inbox.

Mr Lewis also offered his prediction of what could happen in April and advised households to do one "simple" thing in order to save money.

He added: "Current predictions are the Price Cap will rise again on 1 Apr by a couple of percent, then drop slightly in July and slightly again in Oct. Even then it's still expected to be slightly MORE than now. So over the next year it's predicted you will pay a couple of percent more than now on average.

"The cheapest fixed tariffs available right now are around 5% LESS than the current price cap. Therefore the simple thing to do is lock into a fix now to save money and guarantee no future hikes. Full whole of market by default comparison at https://clubs.moneysavingexpert.com/cheapenergyclub."

After today's announcement about the energy price cap rise, Tim Jarvis, director general of markets at Ofgem, said: "While today’s change means the cap has remained relatively stable, we understand that the cost of energy remains a challenge for too many households. However, with more tariffs coming into the market, there are ways for customers to bring their bill down so please shop around and look at all the options.

"Our reliance on volatile international markets - which are affected by factors such as events in Russia and the Middle East – means the cost of energy will continue to fluctuate. So it’s more important than ever to stay focused on building a renewable, home-grown energy system to bring costs down and give households stability.

"In the short term though, anyone struggling with bills should speak to their supplier to make sure they’re getting the help they need and look around to make sure they’re on the best, most affordable deal for them."

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