Martin Lewis reveals exact amount all households will pay even if they don’t use any energy
6 September 2022, 08:38 | Updated: 6 September 2022, 10:09
Martin Lewis explains rising electricity costs
Money Saving Expert Martin Lewis has explained the amount of money you will pay even if you don’t use any gas and electricity.
Martin Lewis has revealed that all households will still pay over £200 this year, even if they use no energy.
The Money Saving Expert has been appearing on Good Morning Britain this week to discuss the rising cost of bills in the UK.
And talking to co-host Susanna Reid, Martin, 50, said that even if you opt to keep your heating off this winter, you'll still owe your energy supplier money.
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“The standing charge means you pay a daily amount for gas and a daily amount for electricity, even if you don’t use it,” he said.
“From October, if you have a gas and electricity meter on direct debit, you’re paying £273 a year even if you use no energy, which is a moral hazard...
“Even if you try to cut your energy costs, the lower you go down, the less of an impact using less energy has for you.”
In his newsletter, Elton said those on prepayment meters will pay an even higher standing charge, costing them £319.56 a year from October.
This comes after it was revealed that those who pay their energy bills by direct debit will see their bills increase by 80% from £1,971 to £3,549 from October.
Those who don't pay for their energy by direct debit will see an increase from £2,100 to £3,764.
Meanwhile, energy analysts predict it could increase again to around £5,400 in January and a whopping £7,000 by April.
Many households are considering cancelling their Direct Debits to save money in the short term as these are based on estimates of usage.
But Martin has warned this could end up costing families more in the long run and leave them with a hefty bill.
In the 13-minute long video, the Money Saving Expert explained to a customer that who do not pay by Direct Debit will pay £200 more if they choose to pay when they are billed by their supplier.
"You will get a short term cash flow gain from switching to paying in receipt of bills,” he said.
"However, over the longer run, because you're paying more for each unit of energy you use, you will pay more in receipt of bills.
"Because if you overpay on direct debit you are entitled to that money back."
