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Martin Lewis claims victory on fixed price energy plans
8 September 2022, 14:44
Victory for Martin Lewis on fixed price energy plans
Jacob Rees-Mogg has confirmed people who fixed their energy prices at a higher rate will be able to swap to a state-subsidised tariff with no exit penalties, money saving expert Martin Lewis has told LBC.
Mr Lewis, speaking to James O'Brien, said: "The one I’ve been lobbying on is that up to 15 per cent of people who took a perfectly sensible decision based on the information available to fix possibly at a higher rate to forestall the rises.
"I hope I’m allowed to say, I spoke to the new Secretary of State for Business this morning, Jacob Rees-Mogg.
"He told me that what I’ve asked for will happen and that is going to happen so I will read out my phrase and as a journalist contemporaneous notes of what I asked him and what he said, yes that will happen.
"Those on fixes can either stay on them or they can leave and switch to the new (my words) state-subsidised tariff with no exit penalties, you would have to switch to your own company’s standard variable rate.
"So, if you’re on a fix and your fix is more than this new rate you will be able to leave it without an early exit penalty.
"I was very grateful that the Secretary of State told me that what I have been lobbying for would happen on that basis."
It comes after Prime Minister Liz Truss unveiled her plan to tackle the energy crisis in the House of Commons on Thursday.
Ms Truss said the Government will introduce an "energy price guarantee" which will "give people certainty on energy bills".
It means no household will pay more than £2,500 a year for each of the next two years. It has partly been funded by suspending the green levy, and supersedes the Ofgem price cap.
As part of the measures, the ban on fracking has also been ended, with supporters of the method hoping it would boost domestic energy production and help lower costs.
Domestic energy production will also be boosted by issuing more than 100 licences to exploit North Sea oil and gas with the aim of getting up to a quarter of British electricity production from nuclear by 2050.
She told MPs in the House of Commons on Thursday: "This Government is moving immediately to introduce a new energy price guarantee that will give people certainty on energy bills, it will curb inflation and boost growth.
"This guarantee, which includes a temporary suspension of green levies, means that from October 1 a typical household will pay no more than £2,500 per year for each of the next two years while we get the energy market back on track.
"This will save a typical household £1,000 a year. It comes in addition to the £400 energy bills support scheme. This guarantee supersedes the Ofgem price cap and has been agreed with energy retailers."