Millions of people will have to pay more for Electricity and Gas from October 2021.
The rise means the poorest and vulnerable are hit hardest if they are on a prepayment metre, they will have to pay an extra £159 making that £1,309 per year.
All other customers will have to pay and extra £139 on top of what they pay now unless you have a price cap, if you are capped on a deal now you will not be affected by the price rise.
We suggest as soon as you can to change your plan to a fixed deal so to escape the price rise.
Regulator OFGEM has said it would be better to look around for the best deal, remember though to get on a foxed deal or you will end up worse of.
The reason for the price rises is due to the rising costs to the supplier who has to pass on the difference to the customer, the timing could not be worse though! nearing winter people on benefits will be struggling more to keep the lights on and to keep warm.
Prepayment metres are a complete rip off and many have to use the emergency payment which gives you a small amount of energy and the end user getting around £3 from £5 credit which has to be paid back the next time you add money to the machine, the knock on effect means you need to add an extra £5 to the card.
We think the government could let families keep the £20 extra on top of their Universal Credit payment to help ease the problems.