Money expert Martin Lewis has confirmed that numerous energy companies, including British Gas, EDF, and EON, will implement a £154 reduction in energy bills for households starting on April 1, 2024. This announcement follows the government’s commitment to reduce energy costs, which was outlined in the recent Budget.
In his latest podcast episode, available on platforms such as BBC Sounds, Spotify, and Apple Music, Lewis detailed the outcomes of his discussions with major energy providers regarding the implementation of this energy bill cut. He noted that most companies have agreed to pass on the full £154 saving, which is achieved by removing a renewable energy tax.
According to the Department for Energy Security and Net Zero, the average household is expected to benefit from this reduction. The department clarified that the £154 figure is a rounded average, and the actual calculation is based on changes to the Energy Company Obligation (ECO) and Renewables Obligation (RO) schemes. It stated, “ECO funding will end from March 31, 2026. Seventy-five percent of RO costs will now be funded from general taxation, with these savings expected to benefit customers on fixed tariffs from April 2026.”
Energy Firms Committed to Passing Savings
During the podcast, Lewis provided a comprehensive list of energy firms that have confirmed their participation in this initiative. He mentioned that the majority of companies would apply the reduction to all tariffs by the specified date.
Among the firms confirmed to implement the cut are 100Green, Co-Op Energy, and Octopus. Lewis listed other companies, including Good Energy, Ovo, and Sainsbury’s Energy, as either confirming their participation or awaiting further details.
Lewis emphasized the importance of these reductions, stating, “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.” He also noted some firms, like Scottish Power and Utility Warehouse, are still finalizing their responses based on government details.
Impact on Households and Future Savings
The anticipated energy bill cut is expected to relieve financial pressure on households across the country, particularly as many continue to cope with rising living costs. The government’s initiative has been welcomed by consumers and advocates alike, as it marks a significant step toward reducing energy expenses that have surged in recent years.
As these changes take effect, the government anticipates that the financial impact will continue for the next three years, with ongoing adjustments to the energy funding structures. The clarity provided by Martin Lewis and the energy firms is crucial for consumers planning their budgets for the upcoming months.
In summary, with the confirmed £154 energy bill reduction to commence on April 1, 2024, households can look forward to some financial relief. The collaborative effort between the government, energy providers, and financial experts like Martin Lewis highlights an essential approach to managing energy costs in a challenging economic landscape.
