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Households are urged to send their meter readings to their energy company by October 1, to avoid overpaying a combined £186 million.
The average household currently pays energy bills of £1,568 a year, with prices capped by Ofgem’s price cap.
But this will rise to £1,717 from October 1, or 10 per cent, for those on variable tariff energy deals regulated by the cap price.
But households should give a meter reading before the new price kicks in on October 1, to make sure they are not overcharged.
Do nothing: Homes with smart meters do not need to provide meter readings, as their devices must connect to energy companies and provide gas and electricity data automatically
This overload can occur if meter readings are not sent, because energy used at the previous, cheaper rate may be billed at the new, higher rate.
Households could pay excess energy bills totaling £186 million if they do not submit meter readings on time, according to comparison service Uswitch.
Many energy companies will accept meter readings after October 1, to give households more time to submit them and avoid system failures that occur when there is a rush of submissions.
But to be safe, it’s best to submit meter readings as close to October 1 as you’re comfortable with.
Homes with variable tariff energy deals with a smart meter shouldn’t need to do anything, as your meter sends readings to your energy company automatically.
Uswitch said the difference between a week’s worth of energy at October rates compared to September is £18.81 for the average household.
Therefore, 10 million homes did not submit a reading by October 1 and had their energy use estimated; Just a week’s worth of energy at the most expensive rates could see them paying £186 million more.
Households that have not submitted a reading recently say it is because they do not know how to read their meter (14 percent) or do not know where their meter is (12 percent).
Ben Gallizzi, energy expert at Uswitch, said: “With energy prices rising next week, it is vital that households submit a meter reading, with a difference of £19 between the energy cost of a week at September prices compared to October.
‘Customers who do not have a smart meter should try to submit their readings on or before Tuesday 1 October, so that their provider has an up-to-date and accurate view of their account.
“If you delay sending your readings, some of your September energy consumption could end up being estimated and therefore charged at the higher October rates.”
What is Ofgem’s energy price cap?
The price cap is a cap, set by Ofgem, that limits the maximum amount an energy company can charge for gas and electricity units used by consumers.
It also limits how much households pay in standing charges – daily rates paid regardless of how much energy is used.
The price cap was introduced in January 2019 to prevent energy companies from overcharging customers on variable rate tariffs.
Because cheap fixed rate deals have all but disappeared, almost all homes now have rates regulated by Ofgem’s price cap.
How does the price cap affect my energy bills?
This depends on the type of tariff you have, your meter and how much energy you use.
From 1 October, the average household on a variable rate tariff paying by direct debit will pay £1,717 a year for gas and electricity due to the price cap.
For those with prepayment meters, annual capped average price energy bills will rise by 10 per cent to £1,669 a year.
Meanwhile, those who pay when an invoice is sent will pay £1,829 a year, a 10 per cent increase.
But exactly how much you’ll pay will vary depending on your energy usage. This is because the price cap only limits the maximum you can be charged for the units of gas or electricity you consume. The more units you use, the more you will pay and vice versa.
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