People are being urged to take meter readings in the coming days as energy bills are predicted to finally fall. Households are being warned to take a reading ahead of the upcoming changes to the energy price cap.
The price cap, which is set by regulators Ofgem and dictates how much the typical household pays for gas and electric, is changing from Saturday, July 1 for the period until September 30. From this weekend the typical energy bill will fall to £2,074 equivalent per year - about 17% less than the current £2,500 typical household bills are capped at by the government's energy price guarantee.
The price guarantee was introduced last year in a bid to curb soaring energy costs for customers, whose average bills are capped at whichever is the lowest between the guarantee and the price cap. The price guarantee will rise from £2,500 to £3,000 from July, meaning households will revert to the price cap again.
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With energy prices finally going down after years of rising costs, people are being reminded that they should take a meter reading within days of the change in order to avoid paying a higher price than they should.
Posting on Twitter, MoneySavingExpert founder Martin Lewis explained that the changes apply to those who pay by direct debit, for whom energy companies estimate usage and assign it to a certain period. Although estimates can work in your favour, they can also lead to you paying higher than usual prices for your gas and electric.
Submitting a reading within a few days of the price cap changes reduces the risk of any estimate going against you. To be in with the best chance of not losing out, Mr Lewis recommends you do this within a few days either side of Saturday, July 1. To be doubly sure, you should take a picture of your meter reading when you do it.
Customers with a working smart meter or prepayment meter do not need to take a meter reading this week. To get all the latest money-saving news straight to your inbox twice a week sign up here.
