Millions of households across the UK have been urged to take a meter reading before midnight on Tuesday to avoid paying higher energy bills as the Ofgem energy price cap rises by 13% on Wednesday July 1. The typical household bill will increase from £1,641 to £1,862 per year.
Who is affected?
Households that do not submit up-to-date meter readings risk having some of their June usage charged at the new, more expensive rates. This could impact an estimated 5.3 million households on standard tariffs that do not have a smart meter. Taking a reading before the price cap changes helps ensure energy used before July 1 is charged at the lower rate.
Those with a smart meter are not affected, as they send regular readings automatically to their supplier.
Expert advice
Money saving expert Martin Lewis advised: "When I first did this, I suggested meter reading day and I crashed virtually every energy site. You can backdate, go and get a meter reading. For belt and braces, you can take a picture of the meter."
Gareth Kloet, energy expert at Go Compare, said: "The extra cost of a single load of washing or one oven cycle may only be a few pence, but households use energy constantly and across lots of different appliances. That is why taking a meter reading on 30 June is so important. It helps make sure your supplier has an accurate record of the energy you used before the new, higher rates come in, rather than estimating your usage and potentially applying the wrong rate to part of your bill."
Ben Gallizzi, an energy expert at Uswitch, said that people on standard tariffs should also look for a cheaper deal: "There are currently 27 fixed deals available that are cheaper than July’s price cap."
Future outlook
The price cap will remain in place until October. Ofgem will announce the price cap for October on or by August 26. The step up in prices reflects the spike in global energy market prices caused by the war on Iran.
