Martin Lewis announces huge price cut method to get £100s off your gas and electric bills this year

Money saving expert Martin Lewis is urging people to take advantage of a brilliant gas and electricity strategy to get hundreds or maybe even thousands of pounds off your energy bills this year.

Speaking on the latest February 20 episode of his consumer advice programme The Martin Lewis Money Show Live on ITV1 and streamed on ITVX, Martin said that there is finally a low-cost light at the end of the financial tunnel for gas and electricity customers across the UK.

Martin announced that energy prices are predicted to drop by as much as 17% this year – at long last – and with one fix you could get your costs down even further than that and ‘beat the price cap.

Martin Lewis said: “Over the next year you’re going to be paying – if the predictions are right – 17% less than you’re currently paying now.

“Which brings me on to what tariffs are there out there. So, first of all, easy winner, everyone or almost everyone can beat the price cap by 3% because the E.On Next Pledge is a very good tariff and existing customers can switch to it on Direct Debit and it is 3% below the price cap. So if the price cap drops, it drops, if it goes up, it goes up but it’s always 3% cheaper for a year, so it’s an easy simple win.

“If you’re gonna stick on the cap and you’re happy to go to E.on, it’s a no brainer because it’s 3% cheaper.

“The cheapest fixes – the big benefit to fixing is you lock in a price so you get certainty and you know exactly what you’re going to pay and no matter what happens in the world economic scenario your price is locked in and that is valuable, even if your price doesn’t turn out to be the cheapest.

“So what’s available? Remember I said over the next year on the cap you’ll pay 17% less than you do now if predictions are right and of course 20% less if you’re on Pledge. So you can argue that’s the comparator.

“So the British Gas price promise is 12% cheaper but on April 1 it promises to drop to £1 cheaper than whatever the April price cap is. So if this 15% price cap prediction turns out to be right it will fix at 15% cheaper until June the following year.”

Martin then said that both the 17% deal and the 12% deal are good options, adding: “They are all perfectly reasonable risk assessments.”

He added that a deal from Outfox The Market at 14% is not as good as the others but has no early exit fees (compared to £75 for British Gas, £25 for E.on) so if the market does get significantly cheaper than 14% lower, you can get out of it without paying.