Martin Lewis corrects Liz Truss energy price cap claims by highlighting 'technical point'

HomeBusiness

Martin Lewis corrects Liz Truss energy price cap claims by highlighting 'technical point'

For the last few days, Mr Lewis has campaigned to ensure everyone understands the true meaning of Prime Minister Liz Truss’s “Energy Price Guarante

Meghan Markle looks unrecognisable in new picture as she dons rubber gloves and cap
Max Verstappen told he can 'help fund the team' after Red Bull hit with cost cap penalty
Truss primed to tear up energy bills price cap in new plan after £60bn support ends


For the last few days, Mr Lewis has campaigned to ensure everyone understands the true meaning of Prime Minister Liz Truss’s “Energy Price Guarantee”. Mr Lewis responded to Prime Minister as she was being interviewed on BBC’s Sunday with Laura Kuenssberg. When pressed on the response to the mini-budget in the UK, Ms Truss said: “I want to reassure people that we do have a very clear plan.

“First of all about how we are going to get through this winter with our energy plan but also how we are dealing with the issue of a slowing economy.”

She then stated that the Price Guarantee would make sure that a “typical family” would not be paying more than £2,500 for their energy bills.

Mr Lewis responded to this in a tweet highlighting the wording of her statement.

He said: “Technical point: £2,500/yr will be the new energy bill under the ‘price guarantee’ for a typical household, not a typical family.

READ MORE: Energy bills lifeline as 130,000 low-income households could see bills cut by up to £700

“Though of course, most people aren’t typical. #LauraKuenssberg”

Ms Kuenssberg noted that Ms Truss hadn’t made it clear that her energy price guarantee was not a cap on bills.

She added: “Just to make it clear to people, you said you are controlling bills for a typical family, what has actually happened is that you have capped the unit price and people may still end up paying more than the £2,500.

“We should be crystal clear about this, shouldn’t we?”

DON’T MISS

Mr Lewis has been vocal about this topic over the last week particularly after Ms Truss did a series of local radio interviews where she claimed that the government has taken action by “stepping in and making sure that nobody is paying fuel bills of more than £2,500”.

Writing on Twitter, he said: “THERE IS NO £2,500 CAP ON ENERGY BILLS.

“Instead, the new 1 Oct guarantee, like the old caps, limits daily charge (28p gas, 46p elec) and Unit rates (10p/kWh gas, 34p/kWh elec).

“So use more, pay more. £2,500 is just what someone with avg use’d pay.”

Mr Lewis then encouraged his followers to share the message in order to clear up the “confusion” which had been caused by her comments.

The Department for Business, Energy and Industrial Strategy (BEIS) did clarify to Express.co.uk that all households were different and their energy usage will depend on how many people live there, what time of day they use the most energy, and how energy efficient their home is.

According to the Government’s own figures, a person who lives in a purpose-built flat will see their average energy bill be around £1,750.

If someone lives in a mid-terraced house it will be around £2,350 and those who live in semi-detached houses will pay around £2,650 a year.

The Government department estimated that detached properties will pay roughly £3,300 annually.

A BEIS spokesperson told Express.co.uk: “For consumers in England, Scotland and Wales who pay for their energy through a monthly, quarterly or another regular bill, the Energy Price Guarantee will be applied when your bill is calculated.”

“This will save the average household at least £1,000 a year based on current energy prices from October.”This consumer saving will be based on usage and the average flat will save £700 a year, based on current prices from October.

“£150 of this £1,000 a year saving will be delivered by temporarily suspending environmental and social costs, including green levies, from being passed onto consumer bills.”

“This direct and decisive action means households will receive significant protection from an 80 percent rise in the Energy Price Cap and won’t see average household bills increase to over £3,500 annually, with some reports predicting bills could have risen as high as £6,500 next year.”



COMMENTS

WORDPRESS: 0
DISQUS: 0