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Liverpool Echo
Liverpool Echo
World
Jess Flaherty

Martin Lewis warns people not to trust energy comparisons, including his own

Martin Lewis has warned people not to trust energy comparison sites at the minute - not even his own.

The Money Saving Expert said not to trust energy comparisons because they underestimate standard tariffs.

The savings that comparison sites show over the next year are compared to the current cap - but the price cap changes every six months.

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It is likely to rise by £100 per year, or more, for typical use from April 1. The new cap is based on wholesale prices.

In his weekly newsletter, Martin explained this is the price energy firms pay themselves and is based on prices from August 2020 until the end of January 2021.

If you're one of the more than 50% of people who are on a big energy firm's standard tariff, its price is governed by the energy price cap and when you compare deals, savings have to be against your current tariff - not the new price cap.

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With the cap rise, savings over the next year will be far more than comparison sites currently tell you.

According to the finance expert, this means typically many people can save £250 per year - not the £160 per year listed.

Martin said not to be put off switching.

Speaking on his eponymous The Martin Lewis Money Show, he said: "When you do a comparison, you're going to save more so don't be put off."

He added: "Always do a comparison - your winner depends on your usage and where you live."

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