Last chance for 11 million people to cut energy bills this weekend | Personal Finance | Finance
Nearly 11 million households could risk overpaying on their energy bills by a collective £30 million if they delay submitting a meter reading before Monday, July 1, according to research by Uswitch.com. To benefit fully from the new cheaper price cap which comes into effect on July 1, households on standard variable tariffs (SVTs) who don’t have a smart meter should record and submit their meter readings before Monday.
The average household on an SVT with typical usage is expected to spend £83 on energy in July, compared with £127 in June. The reduction is down to a combination of cheaper rates and lower usage at the height of summer. Yet, those on SVTs without a smart meter who fail to submit meter readings on or around 1 July risk having some of their usage estimated and possibly charged under the older, more expensive June rates.
The difference between a week’s worth of energy at June’s rates compared to July’s is £2.78 for the average household. Therefore, if those 11 million households didn’t submit a reading by 1 July and their usage was estimated, just a week’s worth of energy at the more expensive rates could see them overpaying by £30 million in total.
Industry analysts suggest energy rates will rise again in October. Rates could stay that way throughout the winter into 2025.
There are a number of fixed tariffs available, which could help lower costs and give households financial stability for at least a year, with some up to 10% below the predicted October price cap.
Uswitch.com is urging households to submit a meter reading this week and compare energy tariffs to see if there’s a better deal worth switching to before the predicted price hikes in October. Ben Gallizzi, energy expert at Uswitch.com, said: “Households should be adding ‘read my energy meter’ to their to-do-list this weekend if they want to take full advantage of lower energy prices from July.
“Customers who don’t have a smart meter should aim to submit their readings before or on Monday 1 July, so their supplier has an updated – and accurate – view of their account. This is when the next energy price cap comes into effect, so if you delay submitting your readings, your energy usage could end up being estimated and therefore charged under the higher June rates. Try making this task a monthly habit for billing accuracy.
“Households are also advised to see whether now is the time to change their energy tariff, to beat the predicted October price hikes.
“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.
“The easiest way to assess your options is to run a comparison at Uswitch.com, where you’ll be able to see available tariffs with personalised costs based on your household consumption.”
Uswitch’s checklist to keep energy bills as low as possible:
CHECK: Check your meter readings are up to date. If you don’t have a smart meter, submit your latest readings on or around 1 July to ensure you’re charged the correct amount for the gas and electricity you’ve used. You should regularly submit meter readings to avoid over or under paying on your bill. Don’t know how to read your meter? Check out this Uswitch guide.
TRACK: Track your usage. Although bills are generally lower in the spring and summer, it’s worth monitoring how much energy you’re using by downloading the free Utrack by Uswitch app. The app connects to your smart meter and offers regular insights into your household energy usage and handy energy-saving tips.
CHANGE: Change your energy tariff. Is it time to switch? Energy rates are predicted to rise from October, so now’s a great time to assess your options and lock in lower summer rates. There are a number of reasonably priced fixed tariffs on the market right now, so run a comparison at Uswitch to see the range of tariffs.
