Martin Lewis confirms OVO and EDF customers will get £150 boost | Personal Finance | Finance
Money Saving Expert Martin Lewis has confirmed that customers of more energy suppliers are set to save £150 on their bills next year. Rachel Reeves announced in the Budget that households will receive an average £150 cut on their bills from April next year.
The Chancellor claimed that the “failed” ECO (Energy Company Obligation) scheme, a long-running energy efficiency programme introduced by the Tories, had cost households £1.7 billion per year on their bills. By scrapping it, the average household will instead see its bill reduced by £150 in 2026.
OVO and EDF have now confirmed plans to pass on savings to all customers in 2026, meaning a reduction in bills for customers. The energy firms have said that this process will be done by cutting customers’ rates by £150 on April 1, 2026, including those on fixed tariffs.
Announcing the news in a post on X (formerly Twitter), Martin Lewis explained: “EDF and OVO have now committed to passing on ‘the full savings in full’ but not how or when they’ll do it (which is needed, for transparency). We’re contacting all other firms to find out their stances. I’m pleased the pressure we’ve been putting on is paying dividends.”
This comes after other energy companies, including British Gas, Octopus Energy and EON, confirmed the same with Money Saving Expert.
Lewis said of these savings: “1. This is the £150 off average bills from the Budget, coming from shifting some policy costs off energy bills and onto general taxation, and cutting the ECO scheme.
“2. The cut to the price cap will be via a 3.5p/kWh (c.13%) reduction in electricity prices and a 0.35p/kWh (c.6%) reduction in gas prices, if everything else remains equal.
“3. Everything else is unlikely to remain equal, as the April price cap was expected to rise, so the actual pound-in-your-pocket cuts will be a little less than this. Currently, around a 6% reduction in April’s Price Cap over January’s is predicted.
“4. EON and Octopus have indicated this will be done by simply cutting all customers’ rates, including those on fixes, by this amount on April 1. Updated: British Gas has now said it will also do it this way.
“5. The Government has told me it is pushing all firms to follow suit, as it should. The key for me, though, is how it will be implemented and making sure it is transparent. I believe a straight cut on all bills on April 1 is the cleanest and best way to do it.”
