Martin Lewis issues important energy bills update for prepayment customers | Personal Finance | Finance

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Prepayment meters are a common method for people to pay their energy bills which allows households to buy their energy in units before they use it. The UK is currently in the midst of an energy bill crisis, with the price cap expected to exceed £3,400 next month, which has resulted in people turning to experts such as Martin Lewis for support. However, with the Government’s new energy price guarantee, household bills will be capped at £2,500 but many have been confused as to how this will affect prepayment customers.

Through Mr Lewis’ moneysavingexpert.com, savers are able to use the website’s energy bills calculator to determine how much their household will pay towards gas and electricity.

On Twitter, the financial journalist notified his followers that the rates for prepayment customers are now available which take into account the Government’s new energy price guarantee.

Mr Lewis explained: “We finally now have the unit rates and standing charges for the new price guarantee (cap) by region.”

He added: “They’re now in our guide and we’ll update the calculator with them next week.”

READ MORE: Entirely free way to save £195 a year on your energy bills – clever money saving hack

How much will prepayment customers pay?

Last week, the new Prime Minister Liz Truss announced the energy price guarantee to address the pending 80 percent hike to bills.

As it stands, gas prepayment households have a current unit rate of 7.36p per kWh with a standing charge of 37.28p per day.

For electricity, prepayment customers see a unit rate of 28.11p per kWh with a standing charge of 50.27p per day

However, this will come to an end on September 30, 2022 when the energy price cap is raised.

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From October 1, prepayment households will pay a unit rate of 10.63p per kWh and a standing charge of 37.51p per day for gas.

The energy price guarantee rate for electricity will be averaged at a unit rate of 33.08p per kWh with a standing charge of 51.41p per day.

It should be noted that all of the above rates and standing charges are averages, which differ depending on region.

Furthermore, these averages for prepayment energy bill customers take into account VAT at five percent. 

READ MORE: Britons in higher bracket can do 2 main things to reduce tax payments

What energy bill support is available?

The Government’s energy price guarantee will be applied to household bills from October 1, 2022 but some prepayment customers will be in need of additional support.

Households will still be eligible for the £400 energy bill grant which will be paid over the course of six months starting from October.

Suppliers, such as British Gas, also have grant schemes which are accessible to those struggling with energy debt.

Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip



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