Nearly ten million households in the UK are at risk of overpaying on their energy bills by a staggering £186 million due to a potential increase in price cap tariffs. Experts are urging customers to take action by submitting accurate gas and electricity meter readings before October 1 to avoid unnecessary charges.
The price comparison site uSwitch has highlighted the importance of providing meter readings to ensure that customers are not charged at the new, higher tariff rate. Without these readings, households could end up paying more for their energy usage for both October and potentially part or all of September, resulting in significant extra costs.
On average, the cost difference for one week’s energy usage between the rates of October and September is £18.81 per household, totaling £186 million across the UK. If the new October tariff were applied to the entirety of September, it would mean an additional charge of £75.24 per household.
To prevent being charged at the higher price cap set to take effect on October 1, households on standard variable tariffs (SVTs) who do not have a smart meter are advised to record and submit their meter readings before the deadline. Failure to do so could result in some of their energy usage being estimated and potentially charged at the new, higher rates.
In addition to submitting meter readings, households are encouraged to explore fixed rate deals that could help them avoid peak winter rates and provide financial stability for at least a year. Some of these fixed tariffs are up to 7 percent below the predicted October price cap, offering potential annual savings of approximately £140-£150.
Ben Gallizzi, an energy expert at uSwitch.com, emphasized the importance of taking action before the price hikes next week. He stressed that submitting meter readings is crucial for billing accuracy and advised customers without smart meters to make it a monthly habit.
Households are also urged to consider switching their energy tariff to secure lower rates and avoid the fluctuations of the price cap. With several reasonably priced fixed tariffs available on the market, now is an ideal time to evaluate options and make a change that could result in cost savings.
Key Recommendations for Energy Bill Management
– Check and update meter readings regularly, especially if you do not have a smart meter. Submitting readings around October 1 can help ensure you are charged accurately for the energy you have used.
– Monitor your energy usage by using tools like the Uswitch app, which connects to smart meters and provides insights into energy consumption along with energy-saving tips.
– Evaluate and potentially switch to a fixed energy tariff to lock in lower rates and avoid the uncertainties of price cap fluctuations.
Taking proactive steps to manage energy bills can help households avoid overpaying and secure financial stability in the face of rising energy costs. By staying informed and making informed decisions, customers can navigate the complex energy market with confidence.