Energy

Households on direct debit energy bills are likely to pay around 18% less for gas and electricity from 1 July, according to final price cap predictions shared today by MoneySavingExpert.com founder Martin Lewis – see his full explanation below.

Around 18,000 Good Energy and Ovo Energy customers have been, or are to be, refunded and offered compensation after the energy firms were found to have charged some users more than the maximum rates allowed. 

Some households with Boost prepayment meters have been hit with unexpected extra charges – totalling hundreds of pounds in some cases – due to a billing error which meant they had been paying too little for their energy. Below we explain what's happening and your rights.

British Gas has cut gas prices for over a million of its prepay meter users as of Saturday 1 April, bringing them in line with the rates paid by those on direct debit. The change means these customers will save an average of £59 each on their gas costs over the next year. Here's what you need to know. 

Almost every household has been charged the same price for their energy over the last year under the Energy Price Cap (EPC) and the Energy Price Guarantee (EPG), with no cheaper fixed deals to switch to. That has now changed, with Ovo launching a one-year fix for existing customers that undercuts the EPG level of £2,500 a year. Here's what you need to know...

Typical household energy bills will remain at £2,500 a year for at least three months from 1 April as the Government has heeded our and others' calls to postpone a planned 20% rise. The announcement ahead of today's Budget follows a month-long campaign led by Martin Lewis, founder of MoneySavingExpert.com, which has been backed by 130 charities and consumer organisations. 

Next month's 20% energy bill price rise is now likely to be scrapped by the Government as energy firms are preparing for it not to go ahead. That's what MoneySavingExpert.com (MSE) founder Martin Lewis told Nick Robinson on BBC Radio 4's Today programme this morning (Friday 3 March).

Energy companies have agreed to stop forced installations of prepayment meters, industry regulator Ofgem has confirmed. This includes the remote switching of smart meters into prepay mode, as well as physical meter installations through the use of court warrants. It follows reports that some households were being forcibly switched despite being clearly vulnerable. 

Prepayment meter customers typically pay more for their energy than those paying by direct debit. But the Chancellor Jeremy Hunt says from 1 July the "prepayment penalty" will end, cutting bills for over four million households.

A social tariff is the best way to stop millions of vulnerable people overpaying for energy, according to a new report from Citizens Advice published today. The consumer charity says eligible households could save up to £1,500 a year on their bills under the proposals. A social tariff is something MoneySavingExpert.com founder, Martin Lewis, has also long argued for.