Money-saving expert Martin Lewis has confirmed that major energy firms, including British Gas, EDF, and EON, will implement a £154 reduction in energy bills for households starting from April 1, 2024. This announcement follows the recent revelation in the UK government’s Autumn Budget, where the energy bill cut was officially announced.
During a recent episode of The Martin Lewis Podcast, available on platforms like BBC Sounds, Spotify, and Apple Music, Lewis detailed his discussions with government officials and energy providers about the forthcoming price adjustments. He noted that the energy companies had largely agreed to pass on the savings, even for customers on fixed tariffs.
The Department for Energy Security and Net Zero clarified that the average saving of £154 per household is made possible by removing a renewable energy tax. In a statement, the department explained that the Energy Company Obligation (ECO) and Renewables Obligation (RO) schemes currently financed through customer bills will undergo significant changes. The ECO funding will end by March 31, 2026, while 75% of RO costs will now be covered by general taxation. These changes are projected to impact bills over the next three years.
Major Providers Confirm Savings Implementation
Lewis provided listeners with a comprehensive list of energy firms that have committed to applying the £154 reduction to their tariffs. He stated, “The vast majority of companies are now saying that they will apply the reduction to all tariffs and they will do it on April 1.”
The confirmed firms include:
– 100Green
– British Gas
– Co-Op Energy
– EOn Next
– Ecotricity (awaiting confirmation for April)
– EDF (awaiting confirmation for April)
– Octopus
– Ovo
– Sainsbury’s Energy
– Scottish Power (intent confirmed, awaiting government details)
– Utilita (only variable tariffs available)
Additionally, some companies, such as Good Energy and Outfox, are still pending responses regarding the specifics of the savings implementation.
Lewis emphasized the significance of these changes, stating, “This is a crucial time for households as they navigate their energy costs.” The announcement comes as many consumers are seeking relief from rising living expenses, making the forthcoming savings particularly timely.
Looking Ahead to Future Savings
The adjustments to energy bills highlight an ongoing effort by the government and energy providers to alleviate financial pressures on consumers. As the energy landscape evolves, households can anticipate further changes by 2026, when the anticipated savings from the ECO and RO funding alterations will materialize.
With the announcement of the £154 savings, energy consumers are encouraged to stay informed through resources like the Money Saving Expert website and other official channels. As the implementation date approaches, further details from individual energy firms will clarify how these changes will affect customers directly.
The commitment from major energy providers signals a collaborative effort to support consumers during challenging economic times, ensuring that the benefits of the government’s policy changes are realized effectively.
