Martin Lewis backs new rate for those using ‘less than £100’ on bills a month

Martin Lewis has praised a new energy tariff that could greatly benefit low-end energy users. In the latest episode of his podcast, the money-saving guru discussed a new tariff on the market that cuts permanent charges, something he has long criticized.

Martin has previously referred to these standing charges, a flat rate applied to all bill payers for access to electricity, as an “energy survey charge” and a “moral hazard”. He pointed out that the permanent charges unfairly affect those who use less energy because they pay the same rate as those who use a large amount of energy. Fortunately, this new tariff aims to address this issue.

He explained: “Let’s look at this new tariff, it’s called EDF Ensure. Its big difference is that it follows the price cap, so when the price cap goes up, it goes up and when the price cap goes down, as we know. will go 7 percent in July, it also decreases.

“Except it will have £50 cheaper permanent charges over a year, a fixed £25 cheaper electricity discount and £25 cheaper gas. Unit rates will be the same as the price. Although it’s actually now launching at the new cheaper unit rate for July so you get an extra 10 days of the slightly cheaper rate, then you’ll be the same as everyone else once their rates drop.”

Martin pointed out that the new tariff is ideal for those with lower energy consumption. He said: “If you use less than £100 a month of energy this looks like a good deal, you might want to switch to it as the ongoing charge has a disproportionate impact on you.

However, he pointed out that “medium to heavy users” will likely find better savings elsewhere. He recommended the E.ON Next tracker for this group, which is typically 3% cheaper than the price cap and offers discounts on unit rates rather than permanent charges.