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Martin: It's Meter Reading Week
On Monday, energy bills FALL an avg 12% (prepay even more). Plus the CHEAPEST FIX may end soon
My 9 Energy Price Cap change need-knows

On Easter Monday, 1 April, the new April to June Energy Price Cap kicks in, falling on average by 12% - an improvement, though energy is still hideously costly.

This Price Cap dictates the rates most people pay for energy, as it sets the max firms in Eng, Scot & Wales can charge for their standard tariffs (and almost all charge the max, natch) - which c. 90% of homes are on (pretty much everyone not on a fix or EV tariff). In simple terms, it means on average for every £100 you currently pay, you'll pay £88 from Monday.

Yet the fact prices are dropping doesn't mean you should sit on your heels, there are Cheaper switches & fixes worth looking at too. So let me take you through everything you need know to protect your pocket.

1. Pay by monthly Direct Debit? It's Meter Reading Week. If you've a WORKING smart meter, you don't need to do anything. If not, try to give an up-to-date meter reading within a few days either side of the rate change to reduce the risk your supplier estimates you've used more at the current higher rate than you have. For extra peace of mind, email yourself a time-stamped pic of the meter. See our firm-by-firm when to do a reading.

It's also a key moment to use our 'Is your Direct Debit right?' calc. If it's out of kilter, ask 'em why and read how to challenge unfair Direct Debits.

2. The 12% fall is an average, it can vary wildly depending on location and usage. See your change with our quick calc. Regulator Ofgem's Price Cap sets regional limits for the standing charge and unit rates firms can levy depending on payment method (eg, Direct Debit, pay in receipt of bills and prepay).

I can hear thousands of you gnashing teeth at the standing charge increase to 91.5p/day just for the facility of gas & electricity (see why standing charges are rising). I've long campaigned against the moral hazard of this energy 'poll tax', as lower users see relatively less gain from cutting use.

Though as unit rates are the majority of each bill in all normal circumstances, barring mostly empty homes, you'll STILL PAY LESS OVERALL from April. Yet the standing charge rise means higher users, especially with gas, save a higher percentage than lower users. After much lobbying, I'm glad Ofgem is finally reviewing the standing charge.

3. Prepay will now be the cheapest way to pay. Prepay standing charges will be lowered on 1 April to equalise them with Direct Debit, and as prepay unit rates are cheaper, that means overall for a typical user from April, prepay will undercut Direct Debit by about 3% - a staggering turnaround for what was the rip-off cost many vulnerable people were forced to pay.

So if you stick on the Cap, moving to prepayment will see a saving. Yet a word of caution... if and when proper competition returns, there are rarely prepay deals. The best offers are dominated by Direct Debit deals, so I suspect Direct Debit will stay overall cheapest for switchers.

PS: Got a non-smart elec prepay meter? If so, the price change tends to happen at top-up. So aim to run what you have now down to near-empty before 1 Apr, then top up as soon as you can from Monday, even with just £1, as that triggers you being charged the lower rate. Full info in prepay top-up trick.

4. Time to stick, switch or FIX: Today's TOP DEALS. Our regularly-updated Should I fix energy? guide takes you through the decent available tariffs for Eng, Scot & Wales (not N. Ireland, it's on a different system). Current highlights include...

• Cheapest FIX: Lock in for a year at 18% under current Price Cap (6% under April's) - may end soon. Last week, the new EDF Essentials 1yr April 25 fix launched for switchers & existing EDF Direct Debit customers (who have/will get smart meters). It's by far the market's cheapest standalone fix, averaging 18% less than the current Cap, and has relatively low £50/fuel early-exit fees.
  
  This hits our 'it's worth fixing' level, as it matches how much it's predicted you'd pay (see below) if you stick on the Price Cap over the next year, yet the big benefit is PRICE CERTAINTY.
  
  

  STOP PRESS: We hope to reopen our Cheap Energy Club comparison later today, 4.30pm Wed by 1:30pm Thur (28 March) (we've been delayed by tech issues) so you can compare this & other tariffs & get £20 switchers' cashback. Having learnt the EDF fix seems to be being withdrawn from comparison sites if you're not a member of 'em (poss indication it won't be around long), I asked the team to reopen CEC, at speed.  Then, to their 'delight', I designed huge changes so you can uniquely compare tariffs against Price Cap predictions. Hopefully we'll be done by the planned 'go live' time. If so, as we always did, we'll give you a cut of any switch revenue as £20 cashback. Note: Due to the rush, for now the comparison's optimised ONLY for dual-fuel price-capped tariffs, others, eg, those on fixes, can switch, but some explanations won't be right. If not and you want to just get the tariff, or do it earlier, go direct to EDF.

  
  The next cheapest standalone fixes are Ovo at 15% less than current Price Cap; then British Gas, E.on and Outfox the Market at 14% less. See our full top fixes guide for info, and they'll be in CEC once it is live.

• Sticking on the Price Cap - get it 3% cheaper. The E.on Next Pledge is open to switchers & existing E.on customers who pay by Direct Debit. It promises to remain roughly 3% below the Price Cap for a year (so £50/yr cheaper at typical use), so as the Cap drops 12% in April, so will this tariff.
  
  Therefore, if you're going to stick on the Price Cap, it's a no-brainer to move to this cheaper version (as long as you're happy with E.on, and have or are willing to get smart meters). It has £25/fuel early-exit penalties.
  
  
• Octopus smart tariffs: Octopus has two innovative tariffs that have been far cheaper than the Price Cap in recent months. They're only for existing customers, but you could always try switching to its standard tariff then switching to one of them...
  
  - Tracker (dual-fuel and elec-only): Where the rates change daily based on wholesale costs.
  - Agile (elec-only): Where the rates change half-hourly, based on wholesale prices. It's been 35% cheaper in the last 3mths. It's especially good for those who can swiftly and fluidly shift their energy usage to the cheap period.
  
  These can be real winners, BUT you need to understand that if wholesale prices spike, so will what you pay.
  
  
• Electric vehicle owners: There are a few special tariffs for charging EVs at home. See which EV tariffs are worth it.

5. What's predicted to happen to the Price Cap? As the graph below shows, after the price falls on Monday (see Energy Price Cap FAQs for full info on how it works), analysts at Cornwall Insight currently predict it'll fall again in July, then rise slightly in October, though if right that'll still be very substantially cheaper than today's cost.

To show the cumulative impact, I've used a 'typical use' scale, though don't overly focus on them, it's the percentages that count.

Overall, over the next year if the predictions are right (the further out you go though, the more crystal-ball gazing it is, and the more the predictions could change radically), you will pay on average, factoring in seasonal usage patterns, 18% less than you do now (we don't have predictions for Jan 2025, so assume them the same as Oct 2024).

6. Energy firms have over £3.7 BILLION of our Direct Debit (DD) cash - check & get excess credit back. At this point in the Direct Debit cycle, you should be close to having run down your excess credit, so my rule of thumb is over a month's worth of DDs in credit is too much.

If that's you, first ensure you've done an up-to-date meter reading, then use our Direct Debit Calc to check yours isn't set too low. If it's fine, politely ask for any excess credit back. Plus, if your DD is set over 10% too high (factoring in the price rise & wriggle room), ask them to lower it too. See full how to get energy credit back for info.

For a few it can be big money, as Debbie emailed us to say: "After giving EDF meter readings, it was confirmed this morning that I am £3,831.91 IN CREDIT! Which is being repaid to me."

7. Are you due FREE insulation? If you're in council tax bands A to D (& E in Scot & Wales) and your home's energy performance certificate rating is D or below, you may now be eligible for free insulation under the Govt's expanded scheme - our Free insulation guide has full details. In Northern Ireland? See NI energy grants.

Victoria contacted us on Twitter with her success: "Thanks to @MartinSLewis and the MoneySavingExpert newsletter, I've just had the loft in my Victorian terrace insulated 100% free under the Great British Insulation Scheme. They also fitted 3 new extractor fans too! Here's to a slightly warmer winter!"

8. Can you cut your bills by cutting your energy usage? Obviously, cutting use cuts bills - and hopefully there are cuts you can make to improve efficiency that don't impact lifestyle too much.

- Start with Energy saving tips.
- Add in the Energy mythbusting guide for less clear-cut issues.
- Really struggling? See our Heat the human not the home guide (though thankfully the summer warmth helps right now).

9. What to do if you're struggling to pay. If you're struggling, it's always worth talking to your energy firm. Be polite and straight with it, and make sure you explain if you're vulnerable. There can be hardship & debt grants from energy suppliers. For far more guidance, see our full What to do if you're struggling to pay energy bills guide.