Martin Lewis will often appear on screen to explain how to save money on bills this year. Speaking on ITV’s This Morning, he explained many Britons are overpaying for their energy bills. The expert revealed the simple way homeowners could save £350 a year on bills.
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Martin explained bill payers should check to ensure they are not overpaying on energy.
He said: “Eleven million are certainly overpaying, but it’s likely even more can save and everyone should check now, as in the last few weeks the prices of the cheapest energy deals have dropped even further.
“People often think energy companies have one price. They don’t. They can have lots of different tariffs.
“To prove the point, those on British Gas standard tariffs right now are paying £1,177 a year – roughly the rate of the price cap.
“Yet British Gas has another tariff at around £900 a year and it’s fixed so you know the price won’t rise.
“So it’s £280 a year cheaper, same gas, same electricity, same safety and same service – just a different price. And most existing customers are eligible to get it too.
“And those willing to move company can save even more, the cheapest deals on the market are currently around £830 for typical usage. So move to that and you could be paying £350 a year less.
“It’d be more accurate to say you could save 25 percent to 30 percent by switching, but doing it in money terms shows the impact more.”
The expert told viewers they could find their best deal by using a price comparison site.
He added: “This is all about using a comparison site like Martin’s ‘Cheap Energy Club’ which is whole of market and also gives you £25 cashback per dual fuel switch, which you wouldn’t get direct, or any Ofgem-approved comparison sites.
“There are two reasons to do this. There is no one cheapest provider. I’ve been talking average prices, but who your cheapest is depends on where you live and how much you use.
“A comparison site works that out for you and tells you the exact saving.
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“Also, some of the cheapest tariffs – especially the super-cheap ones from the big six providers like British Gas, but also E.On and EDF for example – are only available via comparison sites.
“You can’t just call it up and ask for it. This also gives you the advantage of seeing how the deal stacks up for you, as who is cheapest depends on where you live and how much you use.”
However, he issued a warning for those who are going to use a comparison site.
He added: “Do beware, as comparison sites are now allowed to only show you tariffs that pay them, which means you may not see all the deals.”
Martin explained why using a prepayment meter is a pricier way to get energy and homeowners should try and switch to a billed meter.
“If you pay by a key or card meter, as many of the country’s poorest and most vulnerable do, then outrageously there’s nowhere near as much competition, and you pay more – though prices have been capped which has helped a touch,” the expert explained.
“If you do a comparison there are often savings to be made, but often less than £100.
“Yet if you can, try and switch to a billed meter. It’s free to do with one of the big six providers, and you’ll usually be credit scored to check you’re capable of keeping up with payments.”
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