Households across the UK are being urged to read their energy meter and take a photo of the reading before July to avoid overpaying on their bills from next month. Ofgem's energy price cap is due to rise by 13% from July 1, which will add an extra £18 per month to the average bill for households using both electricity and gas.
Why is the price cap increasing?
The increase, driven by the ongoing conflict in the Middle East, means the typical household on a standard tariff is now facing an annual energy cost of £1,862, up from £221 on current levels, with early forecasts indicating a further rise in October. The energy price cap sets a maximum price that suppliers can charge customers in England, Scotland and Wales for each unit of gas and electricity they use, as well as a maximum daily standing charge, which is the cost of having your home connected to the grid.
New rates from July 1
Gas costs per kWh will rise from 5.74p to 7.33p – a 28% rise and the highest level since September 2023, while electricity rates will increase by just under 6%. The price cap is updated every three months, meaning the increase from July 1 will be in effect until September 30.
Uswitch urges meter readings
Ahead of the change on July 1, energy price comparison and switching service Uswitch is urging households to read their meter and submit a reading by the end of this month. According to Uswitch, more than five million households need to read their meter before July 1 to ensure their energy use isn't charged at next month's new, more expensive rates. It is best to do this on or around July 1 to ensure that you are charged the correct amount, and it's a good idea for households to submit regular meter readings to avoid over- or underpaying.
Ben Gallizzi, energy expert at Uswitch, said: "Millions of households should take a moment to read their meter at the end of the month to avoid being overcharged for their energy due to higher prices kicking in from 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."
Fixed deals available
Gallizzi added: "If you're on a standard tariff, you have only two weeks to avoid higher energy prices from 1 July. There are currently 26 fixed deals available that are cheaper than July's price cap, with average savings of £251, so act now to save yourself money. It's important to run a quick comparison to see options tailored to your personal energy usage. The price cap is going up, but your bills don't have to."
MoneySavingExpert advises taking photos
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 said: "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."
