Nearly 10 million households have been warned they risk overpaying for their energy if they do not send their meter readings to their supplier before a 10 per cent price rise comes into force on 1 October.
The average household energy bill will rise by £149 a year from Tuesday as Ofgem increases its price cap just as homes enter the winter months.
The regulator has raised the limit from the current £1,568 for a typical dual-fuel home in England, Scotland and Wales to £1,717, or around £12 more a month on an average bill.
The latest cap will be just 6 per cent or £117 lower than compared to the same period last year.
Households on a standard variable tariff (SVT) – as opposed to a fixed tariff – and who do not have a smart meter should send their electricity and gas readings to their supplier as close to October 1 as possible to ensure they consume energy sooner. . This date is not incorrectly billed at the higher prices.
Almost 10 million UK households have been urged to send their meter readings to their supplier before the 10 per cent rise comes into force on October 1 (file image)
The average home energy bill is expected to rise by £149 a year as Ofgem increases its energy cap this winter (File image of a person holding a smart energy reader)
Providers that have not received meter readings base their bills on estimated usage, meaning households could be overpaying, while others may not be paying enough.
The price cap sets a maximum price that energy providers can charge consumers for each kilowatt hour (kWh) of energy they use.
It does not limit total bills because households continue to pay for the amount of energy they consume.
From 1 October, standard variable tariff households who pay for their electricity by direct debit will pay an average of 24.5p per unit, with a standing charge of 60.99p per day.
For petrol, the average will be 6.24p per unit with a permanent charge of 31.66p per day.
Ofgem said rising prices on the international energy market, due to rising political tensions and extreme weather events, was the main driver of the decision.
Millions of pensioners are also facing a winter with less support after the new Government decided to eliminate winter fuel payments for those who do not receive pension credits or other benefits.
Some 10 million pensioners will miss out on payments of up to £300 this year.
The October price cap will be significantly lower than during the peak of the energy crisis, which was fueled by Russia’s invasion of Ukraine in February 2022, driving up costs in an already turbulent market.
However, experts believe a new increase is likely in January, and further increases are possible early in the new year due to escalating tensions in the war between Russia and Ukraine.
The latest limit will be just 6 per cent or £117 lower than compared to the same period last year (pictured: a gas meter).
Standard variable tariff (SVT) households have been warned to send their electricity and gas readings to their supplier as close to October 1 as possible (pictured: a heating dial)
This is to ensure that any energy they use before this date is not incorrectly billed at the new higher prices (stock image)
Ofgem chief executive Jonathan Brearley urged consumers to “shop around” and consider a fixed tariff which could save money, adding that the regulator was working with the government, suppliers, charities and consumer groups to do “everything “whatever we can” to support customers. .
Citizens Advice has said it was particularly concerned about households with children and young people and those on lower incomes, who were most likely to have problems with their heating costs.
Comparison site switch calculated that the average household with an SVT is expected to spend £135 on energy in October compared to £55 in September due to a combination of higher tariffs and higher usage in early autumn.
Uswitch Energy spokesperson Ben Gallizzi 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. Try to make this task a monthly habit for billing accuracy.
‘Households are also advised to check whether it is time to change their energy tariffs to avoid October price rises.
‘There are a number of fixed rates worth considering at this time. By opting for a fixed deal, you are locking in those rates for as long as it lasts (usually 12 months), meaning households could have price certainty and avoid the ups and downs of the price cap.’
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