Nearly 10 million households have been warned that they risk paying too much for their energy if they do not report their meter readings to their supplier before a 10 percent price increase takes effect on October 1.
Average household energy bills will rise by £149 a year from Tuesday as Ofgem increases its price cap just as homes enter the winter months.
The regulator has increased the limit from the current £1,568 for a typical dual-fuel household in England, Scotland and Wales to £1,717, or around £12 per month more on an average bill.
The latest limit will be just 6 percent or £117 lower than compared to the same period last year.
Households on a standard variable tariff (SVT) – as opposed to a fixed tariff – and who do not have a smart meter must report their electricity and gas readings to their supplier as close to October 1 as possible to ensure they are delivered before October 1 already consuming energy in October. this date will not be incorrectly invoiced at the higher prices.
Almost 10 million UK households have been urged to send their meter readings to their supplier before the 10 per cent rise takes effect on October 1 (stock image)
Average household energy bills are expected to rise by £149 a year as Ofgem increases its energy cap this winter (stock image of a person holding a smart energy reader)
Suppliers who have not received meter readings base their bills on estimated consumption, meaning households may pay too much, while others may not pay enough.
The price cap sets a maximum price that energy suppliers can charge consumers for each kilowatt hour (kWh) of energy they use.
It does not limit overall bills because households still pay for the amount of energy they use.
From October 1, households on a standard variable rate who pay for their electricity by direct debit will pay an average of 24.5 cents per unit, with a fixed rate of 60.99 cents per day.
For gas the average will be 6.24p per unit, with a flat rate of 31.66p per day.
Ofgem said rising prices in the international energy market, due to heightened political tensions and extreme weather events, were the main driver behind the decision.
Millions of retirees are also facing a winter of reduced support after the new government decided to scrap winter fuel payments for those who don’t receive pension credits or other benefits.
Around 10 million pensioners will miss out on payments of up to £300 this year.
October’s price ceiling will be significantly lower than at the height of the energy crisis, which was sparked by Russia’s invasion of Ukraine in February 2022, driving up costs in an already turbulent market.
However, experts believe there is likely to be a further increase in January, with more increases possible early in the new year due to escalating tensions in the war between Russia and Ukraine.
The latest limit will be just 6 percent or £117 lower than compared to the same period last year (Picture: A gas meter)
Properties on a Standard Variable Tariff (SVT) have been warned to send their electricity and gas details to their supplier as close to October 1 as possible. (Image: a heating indicator)
This is to ensure that the energy they use before this date is not incorrectly billed at the new higher prices (stock image)
Ofgem chief executive Jonathan Brearley has urged consumers to ‘shop around’ and consider a flat rate that could save money, adding that the regulator was working with the government, suppliers, charities and consumer groups to ‘do everything do what we can’ to support customers. .
Citizens Advice has said it is particularly concerned about households with children and young people and households on lower incomes, who are most likely to struggle with their heating costs.
Comparison site Uswitch calculated that the average household with an SVT is expected to spend £135 on energy in October, compared to £55 in September due to a combination of higher tariffs and increased consumption in early autumn.
Uswitch energy spokesperson Ben Gallizzi said: ‘With energy prices rising next week, it is vital that households report a meter reading, with a £19 difference between the cost of a week’s energy at September prices compared to October.
‘Customers who do not have a smart meter should aim to submit their readings before or on Tuesday, October 1, so that their supplier has an up-to-date and accurate view of their bill.
‘If you delay submitting your measurements, some of your energy consumption in September may be estimated and therefore charged at the higher rates for October. Try to make this task a monthly habit for billing accuracy.
‘Households are also being advised to consider whether now is the time to change their energy tariff to cope with October’s price rises.
‘There are currently a number of fixed rates that are worth considering. By choosing a fixed deal, you fix the rates for a period of usually twelve months. This means that households can have price certainty and avoid the ups and downs of the price cap.”
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