Martin Lewis' £170 warning to EDF and EON customers

Anyone who gets gas and electricity from two specific firms has been given the MoneySavingExpert advice. Martin Lewis is advising people to switch to an EDF or EON tariff based on whether they spend more or less than £170 a month on gas and electricity, due to the Ofgem price cap quirks.

With the market presenting unique deals driven by energy usage, the best tariffs at the moment hinge on individual energy expenditures. EDF and EON have come out with two different tariffs aimed at reducing energy bills in their own distinct ways.

EON's offer includes the EON Next Pledge tracker, which targets reductions in unit rates, meaning savings on the actual price of each unit of electricity or gas consumed.

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In contrast, EDF is targeting the much-criticised standing charges with their deal, offering a discount on these compulsory daily fees. However, for those with higher energy consumption, EDF may not prove as fruitful since it does not lower the unit rates, reports the Express.

Martin Lewis clarified the situation on his podcast, saying: "EDF Ensure will have over a year, £50 cheaper standing charges. A flat discount, £25 cheaper on electricity, £25 cheaper on gas."

He added: "The unit rates will be the same as electricity, although actually it's launched now at slightly cheaper July rates then in 10 days or so you'll be on the same rates as everybody else."

Lewis sums up the potential benefits: "Who's it good for? Well it looks a good deal for lower users. A rough back of the envelope, if you're using less than £100 a month on energy then you might want to switch to it because the standing charge has a disproportionate effect on you so EDF Ensure wins."

"If you compare it to a few other types of tariff out there, then for medium to higher users, you'll be better off elsewhere."

"EON Next discounts the unit rates, whereas the new EDF tracker discounts the standing charge."

"So clearly you can see the EDF tracker favours lower users, the EON tracker favours higher users cos they use more unit rates as that's what they're discounting."

"It looks like if you're using less than £170 a month then the EDF tracker wins, if you're using more than £170 a month EON with discounted unit rates wins."

However, Martin pointed out that a fixed deal might trump either of them at present because the price cap is predicted to surge in October.

He added: "But generally for medium to higher users at the moment, I would probably be looking at fixing."

"While the energy price cap is due to drop by 7% in July, it's actually due to rise 12% in October."

"You can fix right now at 7% less than the price cap over the next year, so fixes right now look to be the best bet for medium to higher users. EDF Ensure is best for lower users."