Martin Lewis says there is one thing that Britons need to do after Ofgem raised its energy price cap leaving customers fearing high bills.
The financial journalist was speaking on ITV’s Good Morning Britain when he urged viewers to check their energy accounts after gas and electric bills rose in January.
The energy price cap increased by around five percent on January 1, meaning the typical dual fuel household has gone from paying £1,834 a year to £1,928 annually.
Mr Lewis issued his warning to those who pay for their energy with a direct debit and said they should check whether they are in credit with their supplier.
He said: “The absolute number one piece of housekeeping people should be doing for those on direct debit is check how much energy credit you’re in.
“Up to a couple of months worth of direct debit’s worth of energy credit is appropriate. If you’re more than that, then you need to be questioning whether they’re sitting on too much of your cash.”
Mr Lewis also advocated for energy direct debit calculators, which enable customers to find out if they are paying too much on their bills.
He said: “It may be disproportionate too high or, it may in some cases, be too low as well. I would get on there and see if your direct debit is fair or do they have too much credit?”
And the financial expert issued a grim update on the state of the nation’s bills – saying people are paying more for energy than ever before because the £66-£67 rebate that was in place in 2022/23 has been ditched.
The Ofgem price cap sets the maximum rate which energy firms are able to charge customer per kilowatt hour for their gas and electricity use.
But there may be good news later on in the year as the price cap is tipped to reduce by 14 percent in April and drop an additional four percent in July.
Mr Lewis said: “If you’re on the price cap it is looking prices will drop quite substantially in April. Based on current predictions, no fixes on the open market look worthwhile.
“The only tariff I would suggest people look at and see is right for them is the E.on Next Pledge Tariff. It is basically the price cap with a 3% discount. So for the next year you will pay whatever the price cap is but this one is 3% cheaper.”
