Martin Lewis issues £170 bill warning to EDF and EON customers

Martin Lewis urged people to switch to an EDF or EON tariff. Because of the peculiarities of Ofgem’s price cap tariffs, some of the best deals on the market depend on how much you spend on your energy bills.

That’s because energy giants EDF and EON offer two different tariffs that promise to cut bills in two very different ways. EON offers an EON Next Pledge tracker which it says will shave money off unit rates – the amount you actually pay for each piece of electricity or gas.

While EDF offers money from standing tariffs – daily charges added to your bill regardless of what you use. But this offer is not worth it for higher energy users as it does not offer any discount from the unit rates itself.

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Martin explained that people should change rates depending on whether they spend more or less than £170 a month on gas and electricity, the Express reports. He said on his latest podcast: “EDF Ensure will be £50 cheaper permanent charges in a year’s time.

“A fixed discount, £25 off electricity, £25 off gas. The unit rates will be the same as electricity, although it is actually being launched now at slightly cheaper rates in July than in about 10 days you will be the same. rates like everyone else.

“Who is it good for? Well, it looks like a good deal for smaller users. A thick file of the envelope, if you use less than £100 a month for energy then you might want to switch to it as the standing charge has a disproportionate effect on you so EDF Ensure wins.

“If you compare it to a few other tariff types out there, then for medium to larger users, you’re going to be better off elsewhere. EON Next reduces unit charges, while the new EDF tracker reduces the permanent charge.

“So clearly you can see the EDF tracker favors the smaller users, the EON monitor favors the larger users because they use more unit rates because that’s what they’re discounting. It seems if you use less than £170 per month then EDF tracker wins, if you use more than £170 per month EON with reduced unit prices wins.”

But a fixed deal could beat any of those right now because the price cap is expected to rise in October, Martin said. He added: “But overall, for medium to larger users at this point, I’d probably look at patching.

“While the energy price cap will fall by 7% in July, it will actually rise by 12% in October. You can fix right now for 7% less than the price cap over the next year, so it gets fixed right Now look to be the best bet for medium and larger users.