Martin Lewis has broken down the average direct debit rates for households on default standard tariffs from the beginning of October.
The energy price cap is set to increase next month to £2,500, which is still a freeze on the Ofgem cap, in order to help people survive the cost of living crisis.
If action had not been taken the price cap would have rose to £3,549 instead, putting more people at risk of being unable to pay their bills.
To try and help people out Martin Lewis has been giving out advice on what action people can take, and he's now also broken down the new average direct debit rates.
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— Martin Lewis (@MartinSLewis) September 12, 2022
NEWS: The new 1 Oct price guarantee average direct debit rates have been announced
Electricity
Unit rate: 34.00p per kWh
Standing charge: 46.36p per day.
Gas
Unit rate: 10.30p per kWh.
Standing charge: 28.49p per day
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Lewis posted a thread on his Twitter, writing: "The new 1 Oct price guarantee average direct debit rates have been announced. Electricity Unit rate: 34.00p per kWh Standing charge: 46.36p per day. Gas Unit rate: 10.30p per kWh. Standing charge: 28.49p per day.
"This is just an average, rates are set by region.
"They will also likely be a few % higher for those who use prepay or pay on receipt of bills."
Lewis also intially said: "These rates only apply to homes on default standard tariffs (about 85% of homes). Fixes that cost more than the new price guarantee will also likely see their rates reduced. But we are still waiting for clarification on how and what happens to those on cheaper fixes."
However, he later clarified this stating: "Sorry me [I was] confused by myast [sic] sentence. Those on cheaper fixes can stay on them. The clarification is whether their Fix rate will be reduced further or stay the same. And how this type of rule would apply."
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