MARTIN Lewis has revealed what the Budget announcement on energy will mean for households up and down the country. Jeremy Hunt has unveiled his “back to work” rescue plan to help Britai…
"For a long time it was the energy price cap set by Ofgem based on wholesale rates - the prices that energy firms pay for energy."The intervention the government chose to do is introduce the energy price guarantee which is a subsidy on energy bills."
Martin explained during the winter months the energy price cap would have been over £4k - but the energy price guarantee was £2.5k.has come down and the one in April is around £3.2k."But because wholesale rates have come down, the current prediction is in July, the energy price cap will drop to just over £2k, lower than the energy price guarantee.
"That means the energy price guarantee, which lasts through until April 2024, is no longer relevant from July."Martin explains having the increase postponed means throughout April, people's bills will remain roughly the same.Martin said: "From July we expect prices to drop from the current rate. "Now the prediction is it will drop by 19 per cent - now there is some crystal ball gazing in there, it may vary."So what are the actual rates you pay going to be?He said direct debit rates on the standing charge will rise by about 6p in July.The unit rate is the price you pay per unit of gas and electric used in your home - for example you will pay 33.2p per kwh used.
The standing charge is a fixed daily amount you have to pay for energy, regardless of how much you use."But because that is rising - the unit rate you're paying will fall from 34.04p to 33.2p."It's currently priced at around 28.5p per day and will make a slight leap to 29.1p.Martin added: "There is a slight increase for lower users because the standing charge has gone up and a slight decrease for high users because the unit rate has gone down.
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