Millions of households across the UK will see energy costs increase from today (July 1) as the latest energy price cap comes into effect, adding £221 to the average annual bill. While the higher rates affect customers on default tariffs, one energy expert warns that the biggest issue could be whether your next bill is based on an 'estimated' meter reading.
Why 'Estimated' Matters After the Price Cap Rise
Justin Nielsen, an energy consultant at Wolf River Electric, is urging households to check their latest bill carefully and act quickly if they spot the word 'estimated'. He said: 'The one word I would tell every household to look for from today is 'estimated'. If your bill is based on an estimate, your supplier is guessing how much energy you used, and that matters much more when prices have just changed.'
Nielsen explained that an estimated bill is not automatically wrong, but it should not be ignored after a price cap rise. If the estimate places too much of your usage into the more expensive period, you could end up paying more than you should.
The Dividing Line: July 1
When energy prices change, suppliers must calculate how much gas and electricity was used before the new rates took effect and how much was used afterwards. Homes with working smart meters usually have this recorded automatically, but households without smart meters or those with meters not sending readings properly may receive estimated bills.
'Think of 1 July as a dividing line. Energy used before that date belongs under the old rates, and energy used after that date belongs under the new rates. If your supplier does not have a recent reading, it has to estimate where that line falls. That is where households can run into problems,' Nielsen said.
How to Protect Yourself
He added: 'The risk is not always dramatic, but it is avoidable. If you can send a real reading today, or as soon as possible, you are giving your supplier a much better picture of what you actually used.'
Households that missed the opportunity to submit a meter reading before the price cap changed should still take one as soon as possible. Nielsen says giving your energy provider an up-to-date reading, along with a clear photo of the meter, can help resolve any future issues with the bills.
'If you missed the ideal date, do not do nothing. Take a reading today, submit it, and keep a photo of the meter. Yesterday would have been best, but today is still useful because it gives you a record close to the price change. The worst thing is waiting weeks and then trying to challenge a bill with no evidence,' he explained.
Smart Meter Owners Not Immune
Even customers with smart meters should not assume everything is working correctly. Nielsen warned that some smart meters stop sending readings without homeowners realising. 'A smart meter only helps if the supplier is actually receiving the readings. Some smart meters lose communication, and some households do not realise until they see an estimated bill. If you have a smart meter but your bill still says estimated, that is a red flag. It means something is not working as it should, and you should contact your supplier,' he said.
What to Do If Your Bill Looks Wrong
If a bill appears higher than expected and is marked as estimated, Nielsen advises submitting an actual meter reading and asking the supplier to recalculate the bill. 'Do not wait until the next bill if something looks wrong. The sooner you query it, the easier it is to fix. Send the reading, keep the photo, and ask the supplier to explain how the bill was calculated. If the usage has been estimated across a price change, ask them to review it using your actual reading,' he recommended.
He added: 'Be polite but firm. You are not asking for special treatment. You are asking for the bill to reflect your real usage.'
