Martin Lewis's Money Saving Expert team has highlighted a nifty trick to get your energy at a cheaper rate ahead of the price cap rise coming in next month. For those who use prepayment meters, you may be able to top-up now, at the cheaper rate, and then use that energy later.
Your rates shouldn’t change until the first time you top up following a price adjustment, the Mirror reports. If you have a smart prepayment meter, this stockpile trick sadly won’t work as these meters are updated remotely with the new rates on the day of a price change.
Explaining the loophole in the latest MSE newsletter, the team said: “Prepay for your energy? Can you top up NOW to beat April's price hike? Many with older, non-smart meters on price-capped tariffs can legally 'stockpile' gas & electricity credit before prices shoot up. If you can afford to, it could mean big savings.”
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Ofgem has announced it is hiking its energy price cap - which limits the rates a supplier can charge for each unit of gas and electricity you use - by £693 from £1,277 to £1,971 in April. Prepayment customers will be worse hit, with an increase of £708 from £1,309 to £2,017.
This means to benefit from the cheaper rates for a little while longer, you’d need to top up your prepayment meter by April 1. An Ofgem spokesperson confirmed to MSE that stockpiling energy is perfectly legal and there is no rule to stop you doing this.
The spokesperson said: "Smart prepayment meters update prices automatically – so topping up in advance would not make a difference. With non-smart prepayment meters, the price customers pay is fixed at the point they top up. This means that any built-up credit is spent based on the price of energy... [when] that credit was purchased.
“So a price increase could temporarily be avoided by building up credit in advance, though this would also work the other way if the price went down."
MSE contacted 11 of the biggest energy suppliers - including British Gas, SSE, E.on and EDF - and only one said the stockpiling trick wouldn’t work. Scottish Power was the only provider that said the additional amount you would've paid under the new rates would be recovered by adding a small amount of debt to your meter at your next annual statement.
MSE has asked Ofgem if Scottish Power is allowed to do this but hasn’t issued a further update.
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