Martin Lewis' MSE shares 'all' households will 'save £900' on electricity bill

The government has told Martin Lewis and his MoneySavingExpert team "all households" will save £900 on their energy bill by next April. The government has written to BBC Sounds and ITV star Mr Lewis this week, as the Cost of Living crisis continues.

MP Claire Coutinho has written to Mr Lewis after she shared his concerns over the energy sector, and Mr Lewis' MSE team have published the response in full. In the letter, Ms Coutinho said: "I want to see a retail energy market which uses competition, investment, and innovation to give consumers the best possible deals.

"Ofgem has recently confirmed that they will remove the Market Stabilisation Charge, which will make the market more competitive and limit extra costs for consumers. DESNZ and Ofgem are also running calls for evidence on default tariffs and the price cap, both of which will help drive competition in the market.

READ MORE Government breaks silence over future of Warm Home Discount scheme

"Our work on off-peak tariffs to allow people to access the cheapest price for electricity during the day could save families an average of £900 off of their annual bill. We expect all households to feel the benefits of these reforms by April 2025."

Ms Coutinho went on: "You made a strong case for better price comparison for customers. I agree. You highlighted that other sectors, such as mortgage rates, are able to provide more forward facing pricing than energy due to the methodology used to calculate them. Ofgem do publish their price cap methodology online, so it is possible to forecast prices using this information.

"But there are a number of risks involved in doing this on a more forward looking basis as Ofgem sometimes will need to make last minute adjustments to the price cap in response to new data on the direction of costs or prices. Ofgem has a legal duty to make such judgement calls and to set the statutory price.

"However, we are consulting on introducing regulation for third-party intermediaries in the energy sector, such as price comparison websites and will consider price transparency as part of our consultation. I stand ready to take action if needed, to make sure customers can shop around with confidence."