Martin Lewis reveals how to save hundreds on bills with one change - are you eligible?

Martin Lewis has revealed how you can save hundreds on energy bills with one major change - are you eligible?

The money-saving expert discussed his new tip on last night's (October 29) episode of The Martin Lewis Money Show Live on ITV.

Audience members discovered they could save up to £240 a year on their energy bills by switching to a fixed tariff rather than a default price cap - which eight in ten homes are using.

Martin told the live audience: "Everyone's going to be charged an arm and a leg this winter but I'm trying to reduce that charge. You haven't missed the boat yet and there is still a big opportunity to save.

"Are you are the energy price cap or, as I call it, the energy "pants" and frankly my job tonight is to get most of you off it.

"If you're on the energy price cap, which most of you are, you're paying too much. If you're not sure whether you're on it, you likely are as it applies to 80 per cent of homes."

The money-saving expert said many are on the cap, which limits the amount energy suppliers can charge for a unit of energy, without even knowing.

He continued: "If you have never switched, you are on a price cap. If you were on a fixed tariff or a special tariff that ended and you didn't did anything, you are on the price cap.

"If you are on a fixed tariff or a special tariff that you have actively tried to get other than the normal one, you are not on the price cap and the price cap doesn't apply.

"EDF, Scottish Power and British Gas call their fixed price cap standard variable tariff. Octopus and E.ON call their price cap tariff the flexible tariff and OVO call their price cap the simpler energy tariff."

"It's not a cap on what you pay - in reality, it's a regional cap that depends on where you live, the standing charges, those daily charges you pay just for having the facility and the unit rate - how much you pay for each unit of gas or electricity you use.

"And it depends on the payment method you use.'

Lewis said the simplest alternative is to move to a Fixed Tariff. A "fixed price" energy tariff means the unit price for gas and electricity will not change over the course of the plan - unlike with the price cap which is subject to change in the wholesale.

"A fixed tariff is locked in and that is around 6 per cheaper than the current price cap and 7 per cent cheaper on average than what it will be over the next year," Martin explained.