Martin Lewis had a word of caution for people thinking of cancelling energy Direct Debits to 'keep in control'
Martin Lewis has issued a warning to those who may be considering cancelling an energy direct debit ahead of the price hike in April.
In a tweet on Tuesday, the Money Saving Expert outlined why this may not be a good idea.
His tweet read: "WARNING! Many talking about cancelling energy Direct Debits to 'keep in control' and just pay when billed.
“Yet be aware that's usually charged at a HIGHER RATE. Price cap (for someone with typical use) paying by Monthly DD £1,971, Prepay meter £2,017, Quarterly bills £2,100."
https://twitter.com/MartinSLewis/status/1506289860075823108
This prompted a flood of questions in the comments from people understandably concerned by the April price hike and the wider cost of living crisis,
Birmingham Live reports.
One said: "Can I please ask, if I’m on a pay point form of gas. If I top up several times before April 1?
"Will IU be charged at the current rate or the rate after 1st April? I this makes sense?
"I’m considering buying now to bulk by my gas on the current price plan?"
https://twitter.com/ColWrighty5/status/1506290775721660424
Another asked: "We were on direct debit before our provider went bankrupt.
"However we are now on British gas and seem to only be able to pay quarterly?"
A third raised their concerns, saying: "I have been trying to sort out with BG but they want me to read my own meter and I'm currently too disabled to get to it or let anyone in the front door to access it as communal intercom broken."
From April 1, the price cap set up buy the energy regulator Ofgem will be rising by 54 percent. This will see the maximum amount energy companies can charge rise from £1,277 to £1,971, a rise of £693 annually.
On Wednesday, Chancellor Rishi Sunak is delivering his Spring Statement, and he is under pressure to set out measures to tackle the cost of living crisis.
https://twitter.com/PoliticsJOE_UK/status/1506591670753767429
Related links:
