Martin Lewis has given advice on what energy tariffs people should go for ahead of the price change in April 2024.

The MoneySavingExpert has shared some recommendations ahead of the change to the energy price cap on April 1.

Between April 1 and June 30, the price of energy in a typical household that uses electricity and gas will go down to £1,690 per year.

Ofgem adds: "This is £238 per year lower than the price cap set between 1 January to 31 March 2024 (£1,928)."

Despite the price cap going down, Martin Lewis has shared there are still ways to make the most of it.

Martin Lewis was speaking at the Ideal Home Show at Olympia London, which runs from Friday 22nd March to Sunday 7th April. Find out more at www.idealhomeshow.co.uk.

Martin Lewis' advice on energy tariffs

Speaking at the Ideal Home Show, Lewis explained that the wholesale rates of energy that firms pay are increasing, but the rate at which customers pay is not decreasing as quickly.

He added: "The vast majority of people in the country’s pay is dictated by the energy price cap which is set by Ofgem which says that the maximum standing charge (if you are on the standard tariff), then firms can go lower in price, but they don’t, so effectively Ofgem sets the price.

"It does this based on wholesale rates with a lag, so April price is based on wholesale rates from November to mid-February."

In terms of what tariff he would recommend people moving to he shared, he said: "We know the April price has come down an average of 12%, but here’s the difficulty. You have two choices of tariff. You can stay on the variable tariff that is either price-capped or linked to the price cap, or E.ON Next Pledge. The E.ON next pledge tariff is basically a 3% discount off the price cap.

 

“If you are on the price cap, provided you pay by direct debit and are happy to get a smart meter then you may as well be on the E.ON Next Pledge because it’s 3% cheaper than the price cap.

“The only other tariffs I would think of note, are from Octopus, the tracker tariff and the agile tariff. The tracker tariff price moves every day based on wholesale rates and the agile tariff price moves every half an hour based on wholesale rates.

"They have for the last few months been substantially cheaper than the price cap, but there is no guarantee that they would continue to do so."