AS the new price cap, slated to commence on April 1, looms, British Gas, EDF, OVO, and Octopus customers are urged by financial guru Martin Lewis to take swift action. Lewis, renowned for his money-saving expertise, stresses the importance of this preemptive measure, emphasising the need for prompt action before the looming deadline.
In a recent communiqué addressed to his subscribers, Lewis underscored the significance of the impending changes: “On Easter Monday, 1 April, the new April to June Energy Price Cap kicks in, falling on average by 12% – an improvement, though energy is still hideously costly.”
Elucidating on the mechanics of the price cap, Lewis elucidated, “This Price Cap dictates the rates most people pay for energy, as it sets the max firms in Eng, Scot and Wales can charge for their standard tariffs (and almost all charge the max, natch) – which c. 90 per cent of homes are on (pretty much everyone not on a fix or EV tariff).”
In layman’s terms, Lewis clarified, “It means on average for every £100 you currently pay, you’ll pay £88 from Monday. Yet the fact prices are dropping doesn’t mean you should sit on your heels, there are Cheaper switches and fixes worth looking at too.”
Continuing his advisory, Lewis emphasised the necessity for proactive measures, stating, “So let me take you through everything you need to know to protect your pocket.”
Further expounding on the practical steps customers can take, Lewis advised, “If you’ve a WORKING smart meter, you don’t need to do anything. If not, try to give an up-to-date meter reading within a few days either side of the rate change to reduce the risk your supplier estimates you’ve used more at the current higher rate than you have.”
He added, “For extra peace of mind, email yourself a time-stamped pic of the meter.”
Highlighting the significance of the energy price cap, Lewis reiterated, “The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy and standing charge if you’re on a standard variable tariff.”
Effective from April 1 to June 30, 2024, the energy price cap is set at £1,690 per year for a typical household that utilises both electricity and gas and pays via Direct Debit.
