Energy bills will rise for millions of UK households on October 1, when Ofgem's regulated price cap increases. Anyone on a standard variable tariff will face higher rates for gas and electricity, and experts are urging households to submit a meter reading before the change takes effect.
An energy expert warns that the biggest mistake customers can make is assuming their provider automatically tracks exact usage before and after a price hike. Ben Gallizzi from Uswitch.com explains that submitting a simple meter reading prevents billing mix-ups and stops households from being charged the wrong rate.
What households should do before October 1
Ben said: "Yet another energy price hike will hit millions next week, at the same time many reach for the thermostat – but there are actions households should be taking. Submitting a meter reading, if you don’t have a smart meter, before or on Thursday, October 1, will ensure the energy used is charged at the correct rates and not estimated by a supplier."
"That same deadline applies for the 15 million households on standard tariffs wanting to beat the hike entirely by locking in a lower-rate fixed deal before energy costs rocket for winter."
Ben has given advice similar to what Martin Lewis has said previously. The finance expert has urged homeowners to take a picture of their meters. He has pushed this idea several times, especially when he talks about 'Meter Reading Day.'
Martin Lewis has said: "I would still get your phone out and take a picture of your meter today just in case of a future dispute, you don't need to do anything with it, you might want to email it to yourself so you've got proof."
On the MSE website, the team of specialists also advise: "The easiest way is to take a picture of your meters, so you have the readings to hand. Then you can log in to your online account and enter the readings."
How much is the price cap increasing in October?
According to Uswitch.com, more than four million households without smart meters need to read their meter by the end of the month to avoid being charged incorrect rates for energy used before October 1. The energy price cap, which sets the maximum energy rates paid by homes on standard tariffs, will rise 4% from £1,663 to £1,723 for an average household on October 1.
Homes on a standard tariff with average usage are expected to spend £145 on energy in October, compared with £109 in September. The increase of a third is due to a combination of increased usage and higher rates during the autumn, when the heating turns on.
Without accurate and regular meter readings, energy suppliers will have to estimate usage before billing. Those on standard tariffs who do not have a smart meter and do not submit meter readings on or around October 1 risk having some of their September usage incorrectly charged under the newer, more expensive rates.
Energy rates could increase further, as current predictions suggest January's price cap will reach £2,117 – a staggering 23% jump from the October cap. This would be the third increase in a row and the largest quarterly jump since the energy crisis.
Why is it important to get an accurate reading?
Ben says: "Predictions currently suggest there will be a third consecutive price hike on the way in January, with rates forecast to jump a staggering 23% in the new year. Not all energy deals are the same, and prices vary wildly, so households should not simply accept the first deal offered by their current supplier."
"It’s vital to compare, and it takes just minutes to see options tailored to your personal energy usage. The price cap is going up, but your rates don’t have to."
Around 15 million households are still on a standard tariff and have only seven days to switch to a cheaper fixed deal to beat higher energy rates from October 1. The price hike is avoidable, Ben says, as there are currently fixed energy deals available that undercut the new rates for October. The cheapest tariff is an 18-month deal from Fuse Energy, at £1,688 a year for a typical home, which is £35 below the October price cap and £429 below the average January forecast.
How to take a smart meter energy reading
Keypad meters: Press the 9 button on the keypad. Wait for the screen to show IMP kWh or KWH, followed by your numbers. Write them down from left to right. Ignore any numbers after the decimal point.
Meters with an A button: Press and hold or repeatedly press the green A button to cycle through the screens until you see Rate 01 Act Imp or your kWh reading.
Meters with multiple buttons: If your meter has three unmarked buttons, press the middle one until you see IMP. For orange and blue buttons, press the orange one until you see KWH.
How to take a gas meter energy reading
Press the red A button once or twice (or hold it briefly depending on the model) to wake up the screen and display Credit ON or Volume, then press it again to see the index reading in cubic meters (M3).
What about economy 7 or multi-rate meters?
If your tariff tracks day and night usage separately, press the designated button (such as the middle button or 6 on a keypad) repeatedly to cycle through IMP R01 (often night/off-peak) and IMP R02 (often day/peak).
