MARTIN LEWIS is the founder of the Money Saving Expert website, and now, he spends much of his time sharing his financial advice with the population. Today, he appeared on This Morning, advising viewers on how they could save £250 by switching to a renewable energy tariff.
As well as making things clearer on how renewable energy tariffs actually work, the 47-year-old detailed a way in which some bill-payers may save money – which could lead to around £250 in savings each year. First, however, the broadcaster addressed the hidden price war on energy, which is going on at the moment.
Martin explained this price war will only affect switchers.
“So, if you haven’t switched in over a year and are on your energy provider’s standard tariff, even though we’re heading for summer this is a superb time to sort it,” he insisted.
The Money Saving Expert founder said energy is at its cheapest in seven months, however, the majority of bill-payers will still see increased bills – after changes which came into effect in April.
That’s because the price cap on standard tariffs increased by an average of 10 per cent last month.
Martin said: “It [the price cap] went up by about 10 per cent, around £100 based on a person with typical usage, in April.”
“That means that the cheapest deals have got much cheaper.”
However, Martin said that perversely, at the same time, wholesale prices – those which energy firms pay – are plummeting.
“That’s allowed firms fighting for a new customer to slash the cost of tariffs for switchers,” the Money Saving Expert founder said.
So, while those people -whose energy provider is one of the Big Six- may pay around £1,254 per year, others may be able to access the market’s cheapest deal – which Martin said now stands at £873 per year.
It “is £100 less than it was in January for the same usage,” the financial journalist said.
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