MARTIN Lewis has issued an urgent warning to anyone with a non-smart prepayment meter that could save them cash.
It comes with energy bills set to fall for millions of households from July 1 when a new price cap comes into effect.
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The money-saving guru said anyone with a non-smart prepayment meter should run down their allowance to near empty until July 1.
Then they should top it up as soon as possible after this date to maximise on the new, lower rate.
He tweeted yesterday: “Got a non-smart electricity prepay meter?
“With most firms it’s likely you should be running it down to near empty til 1 July price drop.
“Then top up asap (even with small amount) as that resets price to the new 17%ish lower rate.”
He added: “PS It’s tough to get 100% confirmation on this, but we think it will work with most firms, and there’s no negative if you do it and it doesn’t improve things.”
It comes as energy bills are set to fall by over £400 on average from July 1 after the new price cap, set by Ofgem, comes into effect.
The typical gas and electricity bill will be capped at £2,074 a year instead of £2,500 from next month.
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The price cap will take over from the energy price guarantee, imposed by the Government.
How do energy prepayment meters work?
Millions of consumers in the UK have prepayment meters to pay for their gas and electricity.
Usually, households on a low income use them and they are often assigned to people who have fallen behind on their bills.
Prepayment meters are different to paying by direct debit as you have to top up your energy before using it, rather than paying monthly.
If you have a non-smart prepayment meter, you do this by topping up a key card at a Post Office, Payzone or any other shop with a PayPoint logo.
Once you’ve topped up, you have to slot your card or key into the prepayment meter.
Those with smart prepayment meters can usually top up online and the new credit is sent to your meter automatically, meaning you don’t have to leave the house.
One major negative about prepayment meters is that customers with them usually have to pay more for their energy because of the cost to energy firms of running them.
How else can I save money on my energy bills?
If you’re on a prepayment meter, and despite the incoming fall from July 1 still worried about your bills, you can cut costs in a number of ways.
If you’ve got old-style halogen light bulbs it’s worth switching to LED ones to save you some cash – it could be worth £55 a year too.
Meanwhile, ditching the tumble dryer and drying your clothes outside, if you can, will save you some money too.
Tumble dryers are one of the most energy-guzzling appliances in the home, so air drying is a much cheaper option.
Even if you don’t have a garden or any open space to work with, you can use a clothes airer and leave it next to an open window.
You might be able to get help paying for your energy bills too.
The Household Support Fund (HSF) was set up by the Government and is worth £842million.
The money has been distributed among councils in England who then decide how to allocate their share.
That means what you are entitled to varies depending on where you live, and the type of support varies too.
But, you might be able to get energy vouchers or a cash grant paid direct into your bank account to help you pay for your bills.
Meanwhile, a number of energy companies offer grants if you’re struggling to pay for bills.
You can read the full list of suppliers offering them here.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
This post first appeared on thesun.co.uk
