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Martin Lewis reveals ways for UK customers to beat Ofgem price cap

The E.ON Next Pledge is a variable tariff that promises to always provide a three per cent discount on the Ofgem price cap

Athena Stavrou
Wednesday 21 February 2024 07:17 EST
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Martin Lewis shares energy price cap tip

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Martin Lewis has shared his top tip to beat the incoming energy price cap and save hundreds of pounds on gas and electric bills.

The Money Saving Expert founder explained how energy prices are predicted to drop by around 17 per cent this year and shared one fix that could get a person’s costs down even further.

It comes after regulator Ofgem introduced an energy price cap hike in the new year which saw the cap rise from £1,834 - the lowest figure since March 2022 - to £1,928 a year on 1 January.

The price cap is set four times a year, with the next adjustment set for 1 April.

Although some experts believe the cap will fall at the next review, Mr Lewis shared his “no brainer” trick to beat the price cap by three per cent in the meantime.

Speaking on the Martin Lewis Money Show on Tuesday he said: “Everyone or almost everyone can beat the price cap by three per cent because the E.ON Next Pledge is a very good tariff and existing customers can switch to it on direct debit and it is three per cent below the price cap.

“So if the price cap drops, it drops, if the price cap goes up, it goes up but it’s always three per cent cheaper for a year, so it’s an easy simple win.”

The E.ON Next Pledge is essentially a variable tariff that promises to always provide a three per cent discount on the price cap.

It is estimated to be worth around £50 a year meaning a customer would pay 7.2p per kWh for gas rather than the 7.42p the price cap allows.

Mr Lewis added: “The bigger user you are, the more you get the benefit because it’s a discount on the unit rate.

“For somebody on typical usage, it’s worth roughly £50 a year [in savings].”

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