Martin Lewis close to tears as he warns of ‘catastrophic’ energy bill rise

MARTIN Lewis has warned of a “catastrophic” energy bill rise after the new price cap was confirmed this morning.

The price cap – which limits how much suppliers can charge customers for energy – will increase by £1,578 from October 1.

1

Those who pay for energy bills by direct debit will see their bills increase by an eye-watering 80% from £1,971 to £3,549 on average a year.

This is even higher for prepayment meter customers, who have been stung with a £1,591 bill increase after the price cap moved from £2,017 to £3,608 a year.

Experts have warned the crisis will only get worse. Consultancy Auxilione estimating households will be paying more than £6,500 a year for bills from April.

Commenting on October’s new price cap revealed this morning, consumer champion Martin Lewis said it marked an “unaffordable, terrible rise in energy bills”.

He said on BBC Radio 4’s Today programme: “If we do not get further government intervention, on top of what was already announced in May, lives will be lost this winter.”

He reminded listeners that because the cap does not protect customers from rising wholesale prices, it is not a cap on how much you can be charged for the energy that you use.

It means that you could be paying more than the price cap if you use more energy than the typical household, you could be paying more for your bills.

He said: “There is nothing stopping someone from paying £10,000 a year, which I suspect is what some homes with people with children or with disabilities who need special electronic equipment will be using.”

It comes as regulator Ofgem said the price cap will be reviewed twice as often per year.

The price cap will be reviewed four times a year, instead of two, which will be a bitter blow to households.

It means that should energy prices keep rocketing like experts predict, these increases will be passed on more quickly to customers.