Expert tells of hope over unchanged energy bills

Consumer champion Martin Lewis says he thinks there is an ‘85% chance’ that a planned £500 rise in energy bills from the start of next month will not happen.

The Money Saving Expert. com founder came as reports began to emerge that the Government is close to deciding to keep bills unchanged.

Energy bills are currently capped at 34p per unit of electricity and 10.3p per unit of gas – meaning household bills of around £2,500 a year, because of Government support, which is set to become less generous from the start of April.

That would push average bills to around £3,000.

Mr Lewis said: "I'm hearing there is an attempt to keep the rate at £2,500.

"I would say we're at an 85% likelihood that the price won't be going up."

Some reports say energy companies are already assuming that the Government' s energy support will not become less generous from the start of April and there is speculation the Government will keep the energy price guarantee at the £2,500 level for another three months.

Extending the support on energy bills will cost the Government money but the price to keep protections the same for households until July will only cost the Treasury an extra £2.5bn – less than a tenth of the total cost of the scheme since September last year.

This is because wholesale energy costs are falling and the Government is paying the equivalent of around £1,800 per year towards the average household's energy bill.

Even if it keeps support at today's levels that will fall to around £800 from the start of April, according to current forecasts.