Martin Lewis has issued advice for anyone with an electricity prepayment meter ahead of this weekend's changes to the energy price cap. The founder of MoneySavingExpert posted on Twitter on Friday, June 30 as the UK sees its first fall in energy bills in two years.
The price cap, which sets how much the typical household pays for their gas and electric, is set to fall to £2,074 on Saturday, July 1, putting it below the government's energy price cap of £2,500 and meaning a reduction in the typical energy bill for the first time in two years after years of increases.
Alongside the changes will be alterations to how much those with certain prepayment meters pay for their gas and electric - but it means you need to be strategic with when you top up if you want to avail of the lower costs straight away. To get all the latest money-saving news straight to your inbox twice a week sign up here.
Speaking on Twitter, Mr Lewis explained some important advice for customers with a non-smart electricity prepayment meter. He said the fall in costs coming on Saturday are bigger for these customers because they will now pay the same as direct debit customers.
Chancellor Jeremy Hunt confirmed in his spring Budget in March that prepayment meter customers will no longer be charged more to receive their energy from July 1. Mr Hunt said he wanted to end the “prepayment premium” from July, saving more than four million households £45 a year on their energy bills, according to the Treasury.
Households on the pay-as-you-go meters, who are often some of the most vulnerable, usually pay more on average than direct debit customers because of firms managing the meters passing on costs to users.
Because of the reduced rates coming in, electricity prepayment customers will only start receiving those new rates when they top up. Mr Lewis said this means that customers in this position should wait until Saturday to top up, so they can avail of the cheaper rates.
He said that "even if only for pennies" that this was worth doing in order to cash in on the changes, unless you desperately need to top up on Friday. The trick does not work for gas or for smart meters.
