Millions of households will see their energy bills drop by 12.3 per cent from Monday 1 April when the new Ofgem price cap takes effect. For the estimated 29 million customers on standard tariffs with typical usage, annual costs will fall from £1,928 to £1,690, saving £238 over the coming year.
Consumer champion Martin Lewis said the reduction means that, on average, for every £100 currently paid, consumers will pay £88 from Monday. However, he warned that standing charges will also change on Easter Monday: electricity rises from 53p to 60p per day (24.50p per kWh), while the gas standing charge increases from 29p to 31p per day (6.04p per kWh).
Writing in the latest MoneySavingExpert.com newsletter, Lewis urged those paying by direct debit to treat this as 'Meter Reading Week'. He advised submitting an up-to-date reading within a few days of the rate change to avoid inaccurate estimated bills. He suggested emailing a time-stamped photo of the meter reading as evidence, particularly if a challenge to a direct debit amount is needed.
For prepayment customers on traditional meters, Lewis shared a trick to maximise savings: run the meter down to near-empty before 1 April, then top up as soon as possible from Monday, even with just £1, as that triggers the lower rate. He also noted that firms are holding £3.7 billion in direct debit credit, advising customers with over a month's worth of payments in credit to contact their supplier and request a refund.
The full list of provider-specific meter reading deadlines, including for Utility Warehouse (which requires readings in the five days leading up to 1 April), is available on MoneySavingExpert.com.
