Martin Lewis issues three-day energy overpayment warning to 48,000,000 Brits
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It’s happening again folks: gas and electricity prices are rising from January 1, 2025 – and Martin Lewis has some advice to help you avoid getting stung by hikes. In the latest edition of his Money Saving Expert newsletter, the financial guru discussed the the Energy Price Cap, which is shortly due to go up by around 1%, following a hefty 10% average increase in October.
![[Home electricity smart meter in kitchen and stainless steel kettle.]](https://metro.co.uk/wp-content/uploads/2024/09/GettyImages-1295023357.jpg?quality=90&strip=all&w=646)
As of New Year’s Day, the unit rate for electricity will be 24.86p per kilowatt hour, with standing charges (the fixed daily fee you pay, even if you use no electricity – at 60.97p per day. Gas, meanwhile, clocks in at 6.34kWh and now has a standing charge of 31.65p per day.
Bear in mind, the actual rates you’re charged vary slightly from region to region, and will differ depending on how you pay your bill and the type of meter you have. This will also change again from March 31, as Ofgem announces a new cap every three months.
More than 85% of people in England, Scotland and Wales will be impacted by the new cap though, and homes with typical use who pay by direct debit will see their bills rise by around £21 annually, totalling to £1,738. And while this may not seem like much of an increase to some, the regulator claims UK households could potentially overpay by a collective £66 million if they don’t take action.
If you’ve got a working smart meter at home, you don’t need to do anything as it’ll be accurately giving readings to your supplier from January 1. But for an estimated 48 million of us in the UK, (those without smart meters), Martin Lewis and the team have warned there’s an important step you need to take so you aren’t charged more than you should be.
