Nearly 10 million UK households are being urged to submit their meter readings before October 1 to avoid potential overpayments on their energy bills, as the energy price cap is set to increase. This comes as Ofgem, the energy regulator, prepares to raise the price cap, resulting in an average annual increase of £149 for typical dual-fuel households across England, Scotland, and Wales.
From Tuesday, the energy price cap will rise from £1,568 to £1,717, which translates to an approximate £12 increase per month on average bills. Although this new cap is 6% (£117) lower compared to the same period last year, it still represents a significant hike for households heading into the winter months.
Households on standard variable tariffs (SVTs) without smart meters are especially encouraged to submit their electricity and gas readings to their suppliers as close to October 1 as possible. By doing so, they can ensure that the energy consumed before the price hike is not billed at the higher rates.
Under the new price cap, households on SVTs paying by direct debit will face electricity costs of 24.5p per kilowatt hour (kWh), with a daily standing charge of 60.99p. Gas rates will average 6.24p per kWh, with a 31.66p daily standing charge.
Ofgem has attributed the price increase primarily to rising costs in the international energy market, with geopolitical tensions and extreme weather events cited as key contributing factors.
Impact on Vulnerable Households
The situation could be especially challenging for millions of pensioners, who will face reduced support this winter following the government’s decision to scrap winter fuel payments for those not receiving pension credits or other benefits. An estimated 10 million pensioners are expected to miss out on payments of up to £300 this year.
While the current price cap remains lower than at the peak of the energy crisis following Russia’s invasion of Ukraine in 2022, experts warn of further increases in January and beyond, given ongoing geopolitical tensions.
Advice for Households
Energy experts and consumer advocacy organizations are advising households to consider fixed-rate tariffs to protect against future bill hikes. Citizens Advice has expressed particular concern for low-income households and those without smart meters, who may struggle to submit their readings.
As the country braces for these price hikes, submitting meter readings or switching to a more stable tariff may be crucial for UK households to avoid being charged at the higher rates under the new cap. Accurate meter readings have never been more critical, especially as winter approaches, bringing additional financial strain for many consumers.
