Founder of Money Saving Expert, Martin Lewis, recently presented at the Ideal Home Show, sharing his expertise on energy tariffs in anticipation of the upcoming changes to April’s price cap. Ofgem’s price cap is anticipated to decrease by approximately 12 percent, resulting in more affordable gas and electricity for numerous households. Mr Lewis discussed specific energy tariffs that he recommends considering during this time.
During his presentation, Mr Lewis highlighted the current landscape of increasing wholesale energy rates, despite the gradual decrease in consumer rates. He noted that the majority of consumer prices are dictated by Ofgem’s price cap, which is based on wholesale rates from the preceding months. Therefore, the anticipated April price reduction is based on rates from November to mid-February.
According to Mr Lewis, the only energy tariffs he would consider are the variable tariff, the E.ON Next Pledge, and those offered by Octopus Energy. The E.ON Next Pledge tariff offers a three percent discount off the price cap, potentially beneficial for those content with the terms of direct debit payments and smart meter usage. Furthermore, the Octopus Energy tracker tariff and agile tariff have proven to be significantly cheaper than the price cap in recent months, though future pricing is not guaranteed.
In addition to energy tariffs, Mr Lewis also explored the potential of installing solar panels as a money-saving measure. He noted that the payback period for solar panels can range from eight to 15 years, particularly in light of the current high energy bills. He also emphasized the environmental advantages of using solar panels, directing interested individuals to a comprehensive guide on the Money Saving Expert website.
Furthermore, Mr Lewis offered his perspective on smart meters, deeming the rollout of smart meters in the UK as a “disgrace” due to many of them not functioning properly. He suggested that individuals may not necessarily be at a disadvantage if their smart meter is not functioning optimally, highlighting broader macroeconomic issues surrounding the rollout.
Mr Lewis presented his insights at the Ideal Home Show at Olympia London, held from March 22 to April 7. For additional details, please visit www.idealhomeshow.co.uk.