Martin Lewis issues important warning about new energy guarantee in emergency live show
22.09.2022 - 23:37
/ manchestereveningnews.co.uk
Money saving guru Martin Lewis issued an important warning about the new energy guarantee in an emergency live show on Thursday night (September 22). Live on ITV, Lewis explained the new price guarantee intervention introduced by the government.
Earlier this month, Prime Minister Liz Truss announced that the Government would guarantee that the average household will pay no more than £2,500 in its energy bills, with the new energy price guarantee set to be in place for households from October 1. The money guru warned that the new price guarantee is on standard charges and unit rates, and that there is actually 'no cap' on how much households could end up paying.
And he warned that average households could still be paying almost twice as much as they were last winter. "From October 1, the huge shift coming to households has gone. The household bills will still be just under double what people were paying last December," he said.
READ MORE What the interest rate hike means for you and your wallet
Martin Lewis told viewers that 85 per cent of homes in the UK are already on capped tariffs, which will automatically switch to the new guarantee. The previous price cap, which had updated every six months before being slashed to every three months, is to be replaced.
Lewis warned: "In reality, this new guarantee is just a price cap but for longer and by another name. Like all price caps, there is no total cap on what you can pay.
"The £2,500 limit is an illustration of what it would be for what a typical household would pay. The guaranteed rates and cap are actually on the standing charge and unit rates. If you use more gas and electricty you will still pay more - there is no total cap on what you will pay."
He went on to