Expert says Octopus, British Gas, Aeon, EDF customers should act by July 1

An expert has said every person who buys power should consider switching supplier for the energy price cap change which comes in on July 1. The new level means that bills will fall on average by 7 per cent - although overall people will be paying £400 more a year than they did in 2021.

Appearing on BBC Morning Live, consumer champion Matt Allwright explained that some companies like Octopus energy will be offering different deals to entice customers. And he said other companies such as Aeon are offering a product which will be below the price cap/

He said: ” There are some deals out there that are really interesting. I love it when providers try and do something a little bit different. For instance, Octopus Energy. They have told us that they will be continuing offering the cheapest standing charges of any provider. Now, why this is important is that the standing charge is the bit that you have to pay, regardless of how much you use.

“So if there are people out there who are very good at conserving energy and very careful about what they use, this might look attractive because you can make more of a difference. Because more of your bill is made up of usage charges, you use less.”

Allwright added: “Aeon. They say their next pledge fixed tariff will stay £50 below the cap for an average use home. So think about that. That means the price goes down. Actually, your bill goes down as well to £50 below that for an average household, however, have to say if it goes up, it will be only £50 below that, and your fixed tariff might stay further below that. Still a gamble, but again. Really, it’s reassuring to see providers have got some flexibility now to offer something a bit different.”

Of course not everyone pays by direct debit monthly, with some having to put in money in advance. Allwright said: “But what about people on prepaid metres? OK, this is the big change and it’s a good change. From July, the first prepayment metre, customers will pay £1522 on a average for an average house. For the first time, we are seeing prepayment metres paying less than direct debit customers.

“It was more which is scandalous when you think about the fact that very often these are people who rent, they can be low income or vulnerable customers as well. There’s 4 million households we know that are on prepayment metres. Then, since April, it’s been level with direct debit. Now it’s slightly less and of course we know the downside of prepayment metres can be that you’re very quickly cut off providers like that ability to just say ‘Well, you’ve used up your emergency credit. You have no more credit left a lot easier for them.’”

British Gas, OVO, EDF, Eon and Octopus customers are being told log a meter reading before the new Ofgem energy price cap. If you’re one of the 29million households on an SVT and you also don’t have a smart meter or a pay-as-you-go meter, then you should submit a reading. BBC and ITV star Martin Lewis’ Money Saving Expert team explained: “Giving a meter reading means your supplier will know exactly how much you used when prices change, so you’re fairly charged.

“Yet if all of us rush to do this on the same day, it can lead to suppliers’ websites crashing and phone lines becoming jammed, which can affect vulnerable people (as we saw in March 2022). To avoid that, you can give a reading a few days after and any discrepancy should be minor.

“Or, some firms let you backdate your reading, so if you take the actual meter reading now, note it down, but then submit it at a later date.” But you don’t need to submit a meter reading if you’re on a fixed rate tariff, you have a smart meter or you have a prepayment meter.

By taking a meter reading and sending it in to your supplier either slightly before or on 1 July, you can ensure that you will not be charged the old price cap rate. “The very fact we are still seeing bill levels which are hundreds of pounds above pre-crisis levels underscores the ongoing challenges faced by households,” said Craig Lowrey, a principal consultant at Cornwall Insight.

“The path forward for energy pricing remains uncertain, and with stakeholders advocating for reforms – coupled with a general election on the horizon – energy bills are likely to be an area of continued debate and transformation in the months ahead,” Lowrey added.