Energy bills will fall from 1 July: What you should do to prepare
Energy bills set to fall from July 1 as Ofgem’s price cap drops: here are five steps you need to take to prepare
- Bills for an average household will be £2,074 a year under the new price cap
- We asked experts for their tips on preparing for the July 1 change
Household energy bills will fall from Saturday 1 July when the new energy price cap comes into effect.
The energy price cap for the average household falls to £2,074 – for the first time in almost 20 months.
The price cap changes every three months and the July price cap is in effect until September 30, 2023.
Here are five simple tips to help clients prepare.
Falling: Household energy bills should fall from July 1 under the new energy price cap in effect for three months
1. Keep track of your meter readings and report them on 1 July
If you do not have a smart meter, take meter readings regularly and submit them to your supplier.
This ensures that your bill is correct and enables your supplier to adjust your direct debit to your usage.
If you submit your meter reading on or around 1 July, you can be sure that you will be charged the correct amount for the gas and electricity you use.
2. Check whether your monthly direct debit payments match your actual usage
If this is not the case, you should inform your energy supplier. This way you can be sure that you are not paying too much or too little.
If, after your most recent assessment, you find that you have too much credit on your account, you have the right to ask your supplier to refund part of the excess.
3. Track your usage
Bills are generally lower in the summer, but energy prices remain high, so it’s still worth checking how much energy you’re using.
Comparison site Uswitch.com has a free mobile app called Utrack that provides insight into a household’s energy spending and tips on how to lower their bills.
4. Sign up for flat rate announcement alerts
The future of the energy market remains unpredictable. Vendors are starting to offer firm deals, but many are only available for a short period of time and for a limited number of customers.
To find out when fixed rate deals go live, make sure to sign up for alerts so you can decide if you want to switch.
Customers are being warned that if the energy price cap continues to fall, as predicted by analysts Cornwall Insight, they could end up paying more on flat rate energy bills than they would under the energy price cap.
Supplier So Energy is currently offering a fixed energy deal that is cheaper than the July price cap. It costs £2,047 for the average household with normal consumption – £27 cheaper than the standard rate.
5. Check your eligibility for energy support schemes or subsidies
Depending on your situation, you may be able to get help with your energy bill.
The government has the Warm Home Discount scheme. Those who qualify can receive £150 to help with bills over the winter, while councils also provide help through the Household Support Fund.
A reduction in the price cap on 1 July does not change the fact that energy bills are still historically high, so it remains essential that households maintain their consumption levels
If you are struggling to pay your energy bill, you can also talk to your supplier. Many suppliers have their own customer support funds, and some also offer home insulation and energy efficient white goods.
Uswitch energy expert Ben Gallizzi: ‘A reduction in the price cap on 1 July does not change the fact that energy bills are still historically high, so it remains vital that households keep their consumption under control.
‘Regularly taking meter readings and checking the amount of your collection is as important as ever, and it’s also worth keeping a close eye on the energy market, because firm deals are returning.
‘The energy market remains volatile, so deals are usually only offered for short periods and to a limited number of customers.
‘Consumers must be proactive and prepared to act quickly if they want certainty about their energy bill with a fixed deal.’