The expert says Octopus, British Gas, Aeon and EDF customers should act by July 1

An expert has said that every person who buys energy should consider switching supplier for the change to the energy price cap that will take place on July 1. The new level means bills will drop by an average of 7% – although people will generally pay £400 more. a year than they did in 2021.

Appearing on BBC Morning Live, consumer champion Matt Allwright explained that some companies such as Octopus Energy will offer different offers to attract customers. And he said that other companies like Aeon offer a product that will be below the price limit/

He said: “There are some offers that are really interesting. I love it when providers try to do something a little different. For example, Octopus Energy. They told us they will continue to offer the cheapest ongoing rates of any provider. Now, why this is important is that the ongoing fee is the bit you have to pay regardless of how much you use.

“So if there are people who are very good at conserving energy and very careful about what they use, that might seem attractive because you can make more of a difference. Because a large part of your bill is made up of usage charges, you use less.”

Allwright added: “Aeon. They say their next fixed mortgage rate will remain £50 below the cap for an average home. So think about it. That means the price is going down. In fact, your bill also drops to £50 lower than the average household, however we have to say that if it goes up it will only be £50 below this and your flat rate could remain and smaller. Another bet, but again. It’s really reassuring to see that providers have some flexibility now to offer something a little different.”

Of course, not everyone pays monthly by direct debit, with some having to put money up front. Allwright said: “But what about people with prepaid meters? OK, that’s the big change, and it’s a good change. From July, the first prepayment meter, customers will pay an average of £1522 for an average home. For the first time, we are seeing prepaid meters paying less than direct debit customers.

“It was more what’s outrageous when you think about the fact that very often it’s people renting, they can also be low-income or vulnerable customers. There are 4 million households that we know of that are on prepaid meters. Then, from April, it was on par with direct debit. Now it’s a little less and of course we know the downside of prepaid meters can be that you drop providers very quickly as that ability to just say “Well you’ve used up your emergency credit. You no longer have credit left much easier for them.’”

British Gas, OVO, EDF, Eon and Octopus customers are being told to record a meter reading ahead of Ofgem’s new energy price cap. If you’re one of the 29 million households with an SVT and also don’t have a smart or pay-as-you-go meter, then you should submit a reading. The team of money saving experts BBC and ITV star Martin Lewis explained: “Providing a meter reading means your supplier will know exactly how much you’ve used when prices change, so you’re charged correctly.

“However, if we all rush to do this on the same day, it can lead to provider websites being blocked and phone lines blocked, which can affect vulnerable people (as we saw in March 2022). To avoid this, you can give a reading after a few days and any discrepancy should be minor.

“Or, some firms allow you to backdate your reading, so if you take the actual meter reading now, write it down, but then send it in at a later date.” But you don’t need to send a meter reading if you have a fixed tariff, a smart meter or a prepaid meter.

By taking a meter reading and sending it to your supplier either shortly before or on July 1, you can ensure you won’t be charged the old price cap rate. “The fact that we are still seeing bill levels that are hundreds of pounds above pre-crisis levels underlines the ongoing challenges facing households,” said Craig Lowrey, lead consultant at Cornwall Insight.

“The way forward for energy pricing remains uncertain, and with stakeholders advocating for reform – along with a general election on the horizon – energy bills are likely to be an area of ​​continued debate and transformation in the coming months,” Lowrey added.