Millions of Britons could face higher energy bills if they fail to submit meter readings before the price cap rises on Wednesday. The estimated 5.3 million households on standard tariffs without smart meters risk being charged some of their June usage at the new, higher rates.
Price Cap Increase Details
The energy price cap, set by the regulator Ofgem, will increase by 13% on 1 July. For households paying by direct debit, electricity charges will rise from 24.67p per kilowatt hour (kWh) to 26.11p, while gas charges will increase from 5.74p per kWh to 7.33p. Based on these new rates, the average gas and electricity bill will rise by £221 to £1,862 per year. This increase reflects the spike in global energy market prices caused by the war on Iran.
Urgent Advice for Consumers
Ben Gallizzi, an energy expert at price comparison website Uswitch, urged customers without smart meters to submit readings before or on Wednesday 1 July. “Customers who don’t have a smart meter should submit their readings before or on Wednesday 1 July, so their supplier has an accurate view of their account,” he said. Gallizzi also advised people on standard tariffs to look for cheaper deals. “Your bills don’t have to” go up, he added, noting that there are currently 27 fixed deals available cheaper than July’s price cap.
Potential Savings
For those seeking fixed-rate plans, Uswitch’s best buy table was topped by Outfox Energy at £1,577 per year for the average household, 15% below the July price cap. The higher rates arrive during warmer months when households typically use less heating, offering some relief. Another bill rise had been anticipated when the cap resets in October, but that appears less certain following the recent interim peace agreement between the US and Iran, which led to declines in wholesale gas prices.
