Urgent warning to check energy meters today after a seven percent change

Around 10 million households have been urged to send their energy meter readings to their supplier as cheaper prices come into effect. The average household energy bill fell by 7% on Monday after Ofgem cut its price cap in response to wholesale prices.

The regulator has dropped the cap from the previous £1,690 for a typical dual-fuel household in England, Scotland and Wales to £1,568, a drop of £122 over a year. This is around £500 less than the cap last July when it was £2,074.

However, households on a standard variable tariff – as opposed to a fixed offer – and who do not have a smart meter should send their electricity and gas readings to their supplier as close to 1 as possible July to ensure they are billed correctly at lower prices.

Those who do not submit readings risk having some of their usage after this date charged at the previous, more expensive rates. Suppliers who have not received meter readings base their bills on estimated usage, meaning households may be overpaying, while others may not be paying enough.

The average household is expected to spend £83 on energy in July, compared with £127 in June, due to the lower cap and lower usage due to warmer weather, comparison website Uswitch has calculated. Last autumn offers further relief to households given the previous quarterly drop seen in April, but analysts said they expected Ofgem to raise the price cap in October before lowering it again in January 2025.

Uswitch has also urged households to investigate other tariffs, including fixed deals, to beat the expected October price rises.

Ben Gallizzi, energy spokesperson at Uswitch, said: “There are a number of fixed tariffs worth considering right now. By opting for a fixed offer, you lock in those rates for the duration – usually 12 months – meaning households could have price certainty and avoid the ups and downs of the price cap.”