Martin Lewis was asked about energy price hikes of a whopping 12 percent at Igloo Energy by This Morning presenter Phillip Schofield. Worryingly, Martin warned this price hike is the first of many to hit British customers in the coming months.
“Yeah, 180,000 customers are facing that,” Martin told the presenter.
“It sounds awful and of course it will be a big hike, but you have to understand what’s going on.”
Martin explained price hikes will come across the board for customers, and it’s due to wholesale prices.
“What’s going on is wholesale prices, the prices energy companies pay, are at a record high, a three year high, they are up an average 50 percent this year,” Martin detailed.
“Now, the reason we haven’t heard about this in the news is all the big companies, your British Gas, your EDF, your EON, your SSE, and others, they are already at the price cap, so they can’t go up.
“But I want to warn you now, in October the price cap will go up, and it will go up based on wholesale prices on the last six months.”
This will add over £100 to British energy customers’ bills.
“By the calculations we’ve done with Cornwall Energy analysts, the price cap is going to go up by £110 a year in October,” Martin said.
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“So when you do a price comparison now and it says your not saving much, that’s because, in reality, it’s not factoring in the monumental price hike that is coming for the vast majority of energy customers in October.
“So go now and do a comparison and get yourself on the cheapest possible, even if the saving doesn’t seem big.”
This is not the first time Martin has made such a warning.
Last month he told Radio 5 Live listeners: “Now this is a bit complicated because you wouldn’t have heard this anywhere else because this is future predicting.
“I have to tell you, I have never seen the energy market like this before, wholesaler prices, that’s those that the energy firms pay have rocketed.
“The cheapest fixed deals are around £100 more now than they were just three months ago and £200 more now than they were a year ago.”
The price cap is expected to rise from the current £1,138 a year for someone on the SVT (standard variable tariff) to £1,250.
Energy customers were warned they may accidentally stumble into paying up to £330 more for their energy every year.
Those who feel relieved their bills will be lower in summer may be lured into a false sense of security.
Energy analysts at Forbes Advisor UK warned homeowners not to let summer distract them from rising gas and electricity bills.
They may find their fixed energy deals will expire without them noticing.
When this happens, customers will instantly switch to the SVT, paying hundreds more.