Martin Lewis has taken to ITV’s This Morning show to encourage customers on certain energy deals to install a smart meter. He highlighted the advantages of these devices for people on specific tariffs during his appearance.
His advice came in response to an EDF customer seeking to switch his fixed energy deal. The customer, Matt, is currently on a standard variable deal with EDF and is not interested in a smart meter.
However, he was keen for Martin to assist him in exploring fixed options with another supplier. Martin was more than willing to provide guidance from his home, engaging in a lengthy discussion while hosts Ben Shephard and Cat Deeley listened on.
However, he cautioned Matt and others in similar situations about two things. Firstly, he suggested that smart meters could be extremely beneficial in many scenarios, despite some criticisms.
Secondly, he pointed out that one particular method of bill payment was six per cent more expensive than direct debit. The segment on This Morning aired today, March 4, and began with Matt seeking Martin’s advice on his fixed energy deal, reports Lancs Live.
Host Ben Shephard read out his query, which stated: “Matt is asking what the best fixed energy deal is at the moment. He’s a longtime EDF duel fuel pay as you go customer.
“‘Haven’t been offered their blue freeze tariff for years. I’m stuck on the standard variable. I don’t want a smart meter. But are there any fixed options available to me even with another provider?” In response, Martin had plenty of advice to offer, including a strong recommendation for Matt to reconsider his stance on smart meters.
He explained: “OK, I need to be slightly careful because there are two possible definitions to pay as you go. One is that he does payment in receipt of bills, which many people like to do.”
Continuing, he highlighted the difference, saying: “That is where instead of doing monthly direct debit that spreads your usage across the year so you pay the same each month, they just simply… once they pay up based on the back of what they have used each month …” He recognized that preferences vary: “Now many people like that – many people would also hate it because it means very big bills in winter and very small bills in summer. So you have to do your own budgeting, but it’s important to understand that payment in receipt of bills costs on the price cap 6 % more than direct debit.”
Emphasising the financial impact, he advised: “It is the most expensive way to pay. I wd urge anyone on payment in receipt of bills, even if you don’t want that monthly direct debit – and some are opposed to it on principle – to shift to variable direct debit if you can, which is the same price as normal direct debit but it works pretty much the same way as you have got.”
Clarifying the approach, he concluded: “You know, you pay based on what you have used each month but the money is taken by direct debit rather than you actually having to pay in. Now, he could be on that, in which case there are a couple of fixes out there: you’ll find them on a comparisons site.
“He also by pay as you go may mean he’s on a prepayment meter. Now there are not any fixes available on the market as far as I am aware right now that you can switch to for prepayment meter customers who don’t have a smart meter.
“There are some smart prepay meter rules… er, fixes, but not if you are only on old school prepay. And I would urge you, while there’s a lot of issues with smart meters – and I’ve written to the secretary of state for energy about that, there needs to be change – those on smart prepay, those on prepay especially , it is useful to have a smart meter.
“Both because it means you can pay automatically and pay online, and it’s much easier but also they can monitor your usage and if you’re in trouble they can come and help you.
“So my answer would be if it’s prepayment that you’re on, well, no there aren’t any fixes and I would urge you to move to a smart prepayment meter. Slightly different on direct debit but when it comes to prepayment there are many advantages to being on smart prepay.”
What are smart meters?
Ofgem says they are good for the country – and your pocket. Their website states: “Nationally, smart meters are central to our shift to a cleaner, more flexible energy system. We need to be able to adapt to the new, greener ways we now generate energy, such as through wind or solar power. Also to changing uses of energy, such as electric vehicle charging.
“For example, smart meters will record your energy use every 30 minutes. Suppliers could offer you tariffs that reduce your charges if you use power when it is cheaper for them to buy it on the wholesale market. Or it could be when it is cheaper to supply it to you, such as on a sunny or windy day.”
What does payment in receipt of bills mean?
According to charity changeworks, “payment on receipt means you get a bill for how much energy you’ve used. The bill might cover one month or three months of usage.
“Most energy suppliers let you pay by card, cash or cheque. Payment on receipt means you’ll only ever pay for the energy you’ve used. It means your bills will probably be quite low in summer, but much higher in winter.”
