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Topics: Martin Lewis, Life
Lucy Devine
Topics: Martin Lewis, Life
Money saving expert, Martin Lewis, has issued a warning to customers who pay their energy bills via direct debit.
For the last few months, Martin has been offering advice to Brits to help them prepare for the surge in energy prices from April.
But after noticing some people were considering cancelling their direct debits, Martin took to Twitter to issue an important warning.
"WARNING! Many talking about cancelling energy Direct Debits to 'keep in control' and just pay when billed," he wrote.
"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."
The tweet was flooded with hundreds of comments from followers, with many unsure of the best route to take.
One person wrote: "I cancelled my dd and my bill went up, but the risk of them taking more without my knowledge is too much to bear. Once it's gone you can't get it back... surely there should be some kind of in between?"
While one responded: "If it's a set price DD they can only take the amount you have agreed so you will know exactly what is going out each month. If you pay the bill amount each month you won't know until the bill arrives how much you are going to pay."
And another added: "Arghh makes no sense...... surely you pay for what you've used, I don't go into Tesco and part with £75 for shopping when I've only bought £60 worth and Tesco sit on the extra £15 in their bank until I shop again.... Why is it different for energy suppliers?"
Martin's advice comes as energy bills are set to rocket in price. From next month, Ofgem's price cap will rise from £1,277 to £1,971, meaning the average household bill could be increasing by around £693 per year.
On Wednesday, chancellor Rishi Sunak will unveil his Spring Statement amid the soaring price of energy, fuel and food prices.