Martin Lewis points £106 warning to hundreds of thousands of | U.Ok.Finance Information
Martin Lewis has reacted to in the present day’s announcement that the power price cap will rise by 6.4% with a £106 warning to UK fuel and electric clients.
The Cash Saving Skilled defined on his Cash Present, how the latest increase within the most quantity power suppliers can charge customers on default tariffs for every unit of power will have an effect on them.
He mentioned: “In simple terms, every £100 you pay now, will cost £106.40 from April.
“Remember, it is not a cap on what you pay, if you use more, you’ll pay more.”
The power price cap was launched in 2019 and locations an higher restrict on what power suppliers can charge for every unit of power used.
The cap is reviewed quarterly by the power regulator, Ofgem and in the present day’s increase, which is able to take impact from April 1, is the third consecutive rise.
The regulator blamed the continuing battle in Ukraine for disrupting power availability and pipelines because it confirmed the cap on fuel and electrical energy expenses would rise by £111.
The Authorities mentioned: “In practice, this rise will mean an increase of around £9 per month for a typical household over the next 3 months.”
The rise implies that on average, a typical family pays £1,849 for his or her power over the course of a 12 months.
The 6.4% rise will imply that households are paying round £600 more for fuel and electric than they have been three years in the past previous to Russia’s invasion of Ukraine.
The Authorities web site added that power costs are rising as a result of “international gas prices have risen, bringing British energy bills up with them.”
It continued: “That’s because the price we pay for energy in the UK is set by gas prices on the global market, over which we have no control.
“As a result of recent events that have affected the market, which the whole of Europe is dealing with, wholesale gas prices covered by the period of this price cap are around 15% higher than they were in the period covered under the previous price cap. This is comparable to the rise in prices across Europe.”
Ofgem CEO Jonathan Brearley believes that a potential peace in Ukraine might doubtlessly decrease the quantity households are paying for power.
He mentioned: “Without a doubt, Ukraine was a massive strategic factor that drove up our prices so I would be really hopeful that prices would come down again if we got peace in Ukraine, if gas trading starts to normalise.
“But critically, if nothing else happens in the world that would drive those prices up.”
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