Martin Lewis explains new cheapest way to pay energy bills amid 'staggering but welcome' change
29.02.2024 - 20:01
/ manchestereveningnews.co.uk
Martin Lewis has explained which method of paying for energy will be the cheapest once the new Ofgem price cap comes into force in April.
In his latest edition of the MoneySavingExpert (MSE) newsletter, Martin did a deep dive into the latest changes, which were announced earlier this month. From April, the average annual energy bill for a typical household will fall by 12 per cent - from £1,928 to £1,690.
He said the fall in prices was a move "in the right direction" but warned that prices would still be "near double the cheapest pre-crisis".
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The MSE founder also revealed that in a 'staggering' turn of events, the new rates would see pre-payment meters become the cheapest way to pay. Martin explained to his readers that the price you pay for energy depends on a number of factors, including the method you use to pay your bills.
From April, households with a pre-pay meter, which is paid for either online or with a top-up card or key, will see the cheapest rates. He described this as a 'staggering but welcome' change as they were previously a more expensive way of paying.
Martin wrote: "Prepay (key & card meters), which many of the most vulnerable use, were always the rip-off, so this is a staggering, welcome turnaround. Prepay standing charges are being cut to equal Direct Debit, yet prepay unit rates are cheaper." He said that, overall, pre-pay would be cheaper by around 3 per cent from April.
However, Martin also issued a word of caution to anyone thinking of moving to a pre-pay meter. The money saving expert explained that in the long run it