Nearly 10 million UK homes are being warned to send in their meter readings before October 1. This move is vital to dodge overpaying on energy bills as Ofgem gears up to hike the energy price cap.
Energy Price Cap Jumps by £149 a Year
From Tuesday, the energy price cap shoots up from £1,568 to £1,717. That’s an average rise of £12 a month for typical dual-fuel households across England, Scotland, and Wales. While still 6% (£117) cheaper than last year’s peak, the rise hits hard ahead of winter.
Households on Standard Variable Tariffs (SVTs) without smart meters must get those electricity and gas readings in near the deadline. Doing this ensures you aren’t billed at the newly higher rates for energy used before October.
What You’ll Pay Under The New Cap
- Electricity: 24.5p per kWh
- Daily standing charge (electricity): 60.99p
- Gas: 6.24p per kWh
- Daily standing charge (gas): 31.66p
Payments will be via direct debit under the SVT scheme.
Ofgem blames the increase largely on soaring costs in the international energy market, fuelled by geopolitical tensions and extreme weather events.
Winter Woes for Vulnerable Households
The hit will be toughest on pensioners. Nearly 10 million retirees face losing up to £300 this winter as the government scraps winter fuel payments for those not claiming pension credits or benefits. The move adds pressure on households already wrestling with rising bills.
Experts warn of further price cap hikes come January, thanks to ongoing geopolitical unrest.
Top Tips: How to Dodge the Hike
- Submit your meter readings ASAP, especially if you don’t have a smart meter.
- Consider switching to a fixed-rate tariff for better protection against future rises.
- Keep an eye on official advice from Citizens Advice and energy watchdogs.
With winter looming, getting those readings in and fixing your tariff could save you serious cash. Don’t get caught out paying more when prices soar.
