Around 10 million households in the UK are being urged to send their energy meter readings to their supplier today.
People are being warned to submit the information to ensure they make the most of cheaper prices coming into effect as of Monday, July 1.
Those who do not notify their energy company of their latest readings risk paying more expensive rates – and effectively forking out more than they really owe.
It applies to any households on a standard variable tariff for gas and electricity, as opposed to a fixed deal, where a smart meter is not in place.
The average household energy bill has fallen by 7% as of today after Ofgem lowered its price cap in response to wholesale prices.
The regulator has dropped the cap from the previous £1,690 for a typical dual fuel household in England, Scotland and Wales to £1,568 – a decrease of £122 over the course of a year.
This latest figure is around £500 less than the cap in July last year, when it was £2,074.
It’s because of this change that the most updated meter reading needs to be recorded to make sure you are billed accurately at the new, lower prices – something most of us will need to take advantage of with the modern day cost of living.
Put simply, you may end up paying more money for your bills than you need to.
That’s because those who do not submit readings risk having some of their usage after July 1 being charged at the previous, more expensive rates.
Suppliers who have not received meter readings base their bills on estimated usage, meaning households could be overpaying, while others may not be paying enough.
The average household is expected to spend £83 on energy in July, compared with £127 in June, due to the lower cap and lower usage due to warmer weather, comparison site Uswitch calculated.
The latest fall offers further relief to households given the previous quarter-on-quarter drop seen in April, but analysts have said they expect Ofgem to increase the price cap in October, before dropping it again in January 2025.
Uswitch also urged households to investigate other tariffs, including fixed deals, to beat the predicted October price hikes.
Ben Gallizzi, energy spokesman at Uswitch, said: ‘There are a number of fixed tariffs worth considering right now.
‘By opting for a fixed deal, you’re locking in those rates for the duration – usually 12 months – which means households could have price certainty and avoid the ups and downs of the price cap.’
If you’re looking to cut down on bills, here’s a look at why switching energy providers this summer might save you more money.
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