Brief
Martin Lewis warns fixed‑tariff customers may still see higher energy bills
Lewis says higher usage and direct‑debit estimates can raise bills even on fixed rates.
By Felo News Desk · Published
Money Saving Expert founder Martin Lewis warned that households on fixed‑tariff energy deals could still see their monthly payments rise, despite the Ofgem price‑cap increase of 4% on 1 October, which lifts the average annual bill to £1,723, according to the Independent.
What happened
Ofgem raised the energy price cap by 4% on 1 October, adding £60 per year – about £5 per month – to the average dual‑fuel bill. Lewis noted that while a fixed tariff locks the unit rate, total bills can increase if households use more energy or if direct‑debit estimates are high.
What the reports add
The Independent reported Lewis’s explanation that the “most obvious” reason for a higher bill is increased consumption, and a “more complex” reason is monthly direct‑debit estimates that may overstate usage. He said customers can contest these estimates by proving lower actual usage.
What was said
“What’s locked in is the rate you pay for each unit of energy you’re using. If you use more units of energy you’re going to pay more,” Lewis said in a video posted on Money Saving Expert.
“If you are on a monthly direct debit, they estimate that you’re using more even if you’re not,” he added.
How it came about
Lewis’s earlier Felo News article on 8 October highlighted the same issues – higher usage and direct‑debit estimates – after the same 4% cap rise. He reiterated that a fixed‑rate remains cheaper than the standard tariff, which he expects to rise another 20% in January.
Key facts
- Ofgem raised the energy price cap by 4% on 1 October, increasing the average annual bill to £1,723. (independent.co.uk)
- Lewis says fixed tariffs lock the unit rate but total bills can rise with higher usage. (independent.co.uk)
- Direct‑debit estimates can cause higher bills even if actual consumption does not increase. (independent.co.uk)
Sources
- [1] independent.co.uk — originally reported as “Martin Lewis warns fixed tariffs won’t stop your energy bill rising - how to avoid it”
