Martin Lewis: Money saving expert uncovers a detail that could lead to big saving ahead of the April energy price cap
- 2 months ago
MARTIN Lewis has uncovered a significant detail that could mean extra savings of £49 annually for millions of consumers. Providing his analysis of the latest data released by energy regulator Ofgem, the consumer advocate highlighted key changes. Effective April 1, the energy price cap will decrease from £1,928 to £1,690 per year. This adjustment could potentially lead to a £238 drop in the typical annual dual-fuel bill for the average household. However, it's essential to note that the cap undergoes review every three months, potentially affecting yearly bills.
Moreover, individual costs are contingent on usage, as the cap primarily impacts the unit rates charged by energy companies. Additionally, Ofgem announced other amendments, notably ensuring parity between prepayment meter users and direct debit payers regarding standing charges. Martin emphasised on Good Morning Britain that this adjustment makes prepayment the most economical payment method for the first time. With standing charges now equalised and prepayment unit rates cheaper, starting April 1, households under the price cap—comprising the majority—can anticipate prepayment being around 3% more cost-effective than direct debit. Gas standing charges will rise to 31.43p daily, up from the current 29.6p, while electricity standing charges will increase to 60.1p from 53.35p.
Ofgem specified a reduction in the maximum supplier charge for gas from 7.42p per kWh to 6.04p, and for electricity, a decrease from 28.62p to 24.50p per kWh, effective April 1. Here’s what Martin had to say when appearing on itv good morning Britain. We’ll citizens advice say: Citizens Advice, over 800,000 individuals experienced periods exceeding 24 hours without access to gas or electricity last year, while approximately 1.7 million people faced disconnections at least once per month. Transitioning to a prepayment meter signifies a significant shift in energy payment methods, necessitating manual top-ups either through in-person transactions at stores or via dedicated applications. In contrast, direct debit setups involve consistent monthly payments based on estimated energy consumption, accommodating seasonal variations such as increased usage in winter and decreased usage in summer.
Moreover, individual costs are contingent on usage, as the cap primarily impacts the unit rates charged by energy companies. Additionally, Ofgem announced other amendments, notably ensuring parity between prepayment meter users and direct debit payers regarding standing charges. Martin emphasised on Good Morning Britain that this adjustment makes prepayment the most economical payment method for the first time. With standing charges now equalised and prepayment unit rates cheaper, starting April 1, households under the price cap—comprising the majority—can anticipate prepayment being around 3% more cost-effective than direct debit. Gas standing charges will rise to 31.43p daily, up from the current 29.6p, while electricity standing charges will increase to 60.1p from 53.35p.
Ofgem specified a reduction in the maximum supplier charge for gas from 7.42p per kWh to 6.04p, and for electricity, a decrease from 28.62p to 24.50p per kWh, effective April 1. Here’s what Martin had to say when appearing on itv good morning Britain. We’ll citizens advice say: Citizens Advice, over 800,000 individuals experienced periods exceeding 24 hours without access to gas or electricity last year, while approximately 1.7 million people faced disconnections at least once per month. Transitioning to a prepayment meter signifies a significant shift in energy payment methods, necessitating manual top-ups either through in-person transactions at stores or via dedicated applications. In contrast, direct debit setups involve consistent monthly payments based on estimated energy consumption, accommodating seasonal variations such as increased usage in winter and decreased usage in summer.