Households across the UK are being urged to read their energy meter and take a photo of the reading before Wednesday to avoid overpaying on their bills. Ofgem’s energy price cap will rise by 2% from October 1, which will mean higher bills for more than seven million households on a standard energy tariff in England, Scotland and Wales.
The price cap increase will take the average energy bill for households paying by direct debit for gas and electricity from £1,720 to £1,755 per year. Standing charges, which are what consumers pay per day to have energy supplied to their homes, will also rise from October by 4% for electricity and 14% for gas, or 7p per day, which is primarily driven by the government’s expansion of the Warm Home Discount Scheme. The price cap sets the maximum rate per unit and standing charge that customers can be charged by suppliers for their energy use, but not the total bill, so those who use more energy will ultimately pay more.
According to price comparison service Uswitch, the average home on a standard tariff would spend £140 on energy in October compared to £63 in September, thanks to a combination of higher rates and increased usage in autumn.
To avoid the risk of overpaying on their energy bills, households on standard variable tariffs who don’t have a smart meter are being urged to record and submit their meter readings before or on Wednesday, October 1, so their supplier has an accurate and up-to-date reading.
Those on standard variable tariffs without a smart meter who fail to submit meter readings by October 1 risk having some of their usage estimated – and possibly charged the higher rates.
Uswitch energy spokesman Ben Gallizzi said: “Households should take a moment to read their energy meter in the coming days to avoid the possibility of being charged at October’s higher energy rates.
“Customers who don’t have a smart meter should submit their readings before or on Wednesday, October 1, so their supplier has an updated – and accurate – view of their account.
“Energy billpayers can get ahead of October’s price hike by fixing at cheaper rates now. Currently, there are a range of fixed deals currently available that are around £215 cheaper than the October price cap for the average household.
“If you can switch to a deal cheaper than the October price cap, now is a good time to make the change. We urge customers to run an energy comparison as soon as possible.”
MoneySavingExpert (MSE) also recommends taking a photo of your meter once you’ve taken a reading, that way you have evidence of the correct reading in case there are any issues with the amount you’re charged.
MSE says: “On 1 October energy prices will rise for most households. To avoid being charged more than you should, it’s a good idea to give a meter reading to your supplier as soon as possible to avoid a dispute over what you used before and after prices changed.”
MSE adds: “If you have smart meters that are working properly in smart mode, so they’re regularly sending meter readings to your provider, there’s no need to do anything, as they do it automatically.
“You may want to double-check your meters are sending reads, though. You can usually see this in your account or on your bill. You can also take a photo of your meters on the day, so you have the readings for safety.”
