With energy costs skyrocketing, starting October 1st, the energy price cap will increase by 2%. Consequently, energy prices for millions of households will rise across the UK. This is a relatively small amendment of slightly more than £35 per annum. It will increase the price ceiling on a typical dual-fuel bill to £1,755. Fluctuating wholesale energy prices—largely driven by gas—have made the price cap—even capped—skyrocket. Global instability—including Russia’s invasion of Ukraine—has added fuel to this already volatile mix.
Approximately 7 million households are at risk of overpaying their energy bills. If you don’t have a smart meter, it’s incredibly important for you to get your meter reading in as soon as you can! One in five of these households have not provided a single meter reading in the past quarter, according to reports. Even more alarming, 6% of them have not submitted a single reading in an entire year. If you miss that deadline, your bills could be inaccurate and reflect charges based on the higher price cap. These charges may be calculated using the new, higher rates for a portion of your September usage.
Uswitch, a leading price comparison service, advises that households on standard tariffs should take immediate action to avoid being overcharged. The company’s calculations indicate that at least 7 million high-risk households need to act. If not, they risk overpaying by an eye-watering £125 million.
Ben Gallizzi, an energy expert at Uswitch, urges the need for timely meter readings.
“Customers who don’t have a smart meter should submit their readings before or on Wednesday 1 October, so their supplier has an updated – and accurate – view of their account,” – Ben Gallizzi.
Inia urges families to monitor their energy meters over the next few days. This straightforward action will save them from being surprised by increased rates at the end of October. An average household experiences a jump in energy costs of £17 per week as we move from September to October. That further emphasizes why reporting the correct miles is extremely important.
Third, submit your meter readings on time each month. Plus check out the market’s no-penalty fixed-rate energy deals for more savings! Currently, there are 25 set contracts on the market at or under the soon-to-be-increased ceiling. These new choices will save consumers billions of dollars.
He admits that Outfox Energy currently has the lowest tariff of any competitor by quite a distance. At the cap of £1,540 per year, it is £214.63 cheaper than the cap that just came into effect.
“The cheapest on the market are now coming in more than £215 below the cap, but households need to act fast to lock them in,” – Scott Byrom.
Ofgem sets the energy price cap every quarter, using a formula that tracks wholesale energy prices and network costs to determine how much suppliers can charge customers. Given continued volatility in global energy markets, additional hikes of the price cap may be needed next year.
While households prepare to weather the storm of rising retail prices, Uswitch advises looking elsewhere to find added savings.
As households brace for higher costs, Uswitch also suggests exploring additional savings opportunities.
“It is worth seeing if your supplier offers any free energy schemes at off-peak times, which can save a lot of money,” – an unnamed energy expert mentioned.