Martin Lewis calls for intervention over energy price crisis amid fears over rocketing costs

The Government’s energy price cap is due to be revised next month, with the increase put onto customers’ bills from April.

Now Martin Lewis, founder of Money Saving Expert, warns dramatic increases to bills may leave some people with impossible decisions as to how to heat their homes.

He said: “This year is going to be a very tough year for many people. The energy price crisis needs substantial intervention from the Government.

“We are going to see a minimum 50 per cent increase in energy prices in the system and that is unsustainable for many.”

According to Cornwall Insights, an energy sector specialist, bills could rise from £1,277 a year under the current price cap to £1,865 a year when the next revision is announced, a rise of 46 per cent. They also predict it could spike to £2,240 a year at the following quarterly revaluation in August 2022 without a significant fall in energy prices globally.

Mr Lewis said: “We need to look at what we can do now and how we can protect those people who will need to choose between heating and eating.

“There are already some who are having to make that choice. We need to look at the whole structure of the energy market.”

The warning comes after 20 Tory politicians called on the Prime Minister to help those facing fuel poverty, by slashing VAT on energy bills and suspending the environmental levy to ease pressure on consumers.

Writing in the Sunday Telegraph the MPs, including Yorkshire’s Philip Davies, argued there should also be “a new approach to our energy security”, including a return to shale gas extraction, otherwise known as fracking.

Conservative MP Robert Halfon, who was among the signatories, told the BBC the Government is not to blame for price hikes but insisted more decisive measures are needed.

Intervention

A number of firms collapsed in 2021, with the Government taking over the running of Bulb after it failed in November. Ofgem has subsequently announced changes to how much other energy firms, and eventually customers, can be forced to pay to fund rivals’ collapses.

However, many in the industry say more needs to be done to avoid future companies from going bust and stricter rules put in place over who can run suppliers.

Mr Lewis added that there needs to be greater protection for the most vulnerable.

He said: “What’s coming in April is a seismic hit for fuel bills which is going to be astronomical.”

Calling on the Government to meet with consumer groups and for intervention he added: “They have to sort this now because if we leave this before it’s too late it will be a disaster.”

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