Money Saving Expert founder Martin Lewis took to X to share an “easy way” E.on customers can “pay less” for their energy over the next year.
In a video he shared on X, formerly known as Twitter, Mr Lewis asked followers: “Are you an E.on energy customer? If you are, this is an important heads up because there’s an easy way many of you can pay less for the energy that you use over the next year.”
Mr Lewis then goes on to introduce E.on’s Next Pledge Tracker version two tariff, which is only available for E.on’s existing customers.
Mr Lewis explained: “The reason I’m interested in it is it gives you a discount on the price cap.”
He continued: “There’s a big decision for people at the moment whether they want to get a fixed tariff or not.
“A fixed tariff locks you in to pay a set rate over the next year. Whether that will work out depends on predictions of what’s going to happen to the price cap.”
Mr Lewis then noted that E.on’s deal is not “one of those”, before adding: “This is something different, which is why it needs an explainer.”
According to Mr Lewis, for one year, E.on’s Next Pledge Tracker offers a fixed discount of roughly three percent off the price cap.
He said: “It has regional variances and depends on usage, but let’s say it’s going to be roughly three percent cheaper.
“You pay three percent less than whatever the Ofgem set Price Cap is.”
The price cap, which is there to limit the rate a supplier can charge for its default tariffs, is due to drop by seven percent on October 1. It’s then predicted to rise by around six percent on January 1, before dropping again on April 1.
Mr Lewis said: “Whatever happens to the price cap, if you’re on this particular tariff, you will pay less than the price cap.
“So, the decision about whether to fix or not is quite tricky but if you’re not sure what to do and you’re just going to sit on the price cap – and this suits you – then it’s a no-brainer because it’s cheaper than the price cap.
“Whatever the price cap is, wherever it moves up or down, you’re going to be paying slightly less. How much does three percent equate to? On that mythical typical usage figure, which is mostly nonsense but just to give you an idea, it’s around £50 cheaper a year.”
Moving on to explain some of the details of the tariff, Mr Lewis said it’s dual-fuel or electricity-only, people must pay by direct debit, and they must have or will need to get a smart meter.
Mr Lewis said: “If you choose to leave within the year, you’d pay £25 per fuel – so £25 per electricity, £25 per gas, early exit penalties. You apply on the website.”
The Money Saving Expert added: “This isn’t for everyone, but certainly if you’re sticking with E.on and you’re planning to stay on the price cap or don’t know what to do, well this is a pretty easy way to pay less for the energy you use.”
