Money saving expert Martin Lewis has issued a warning to households, encouraging them to take an energy meter reading before the forthcoming price cap adjustment this Sunday.
While bills are expected to see a slight reduction, it may not be as significant as initially anticipated.
Speaking on ITV’s Good Morning Britain, Mr Lewis said: “We’re actually going to see the standing charge, that poll tax that we all pay just for having the facility of gas and electricity, going up by around 1%.
“A complete mistake by Ofgem, the regulator. It should not be doing this.
“I don’t understand why it wants to do this. It’s incredibly unpopular and I think it is a real moral hazard to charge the lowest users such a great fee for using energy. But it’s doing that. I will continue to campaign against it.”
Mr Lewis explained that the price of electricity will see a reduction of around 9%, while gas prices will decrease by approximately 8%. On average, this translates to a 7% reduction in bills.
Martin Lewis explained: “But it’s worth noting lower users get less of a drop, higher users get more of a drop because of the way they’ve structured it by putting standing charges up and putting unit charges down.”
