Nearly ten million households could be overpaying on their energy bills by a total of £186 million for just one week's worth of heat and light, experts have warned. Industry specialists are stressing the importance of customers taking and submitting an accurate gas and electricity meter reading on October 1, the date when price cap tariffs are set to increase by 10 percent.
Price comparison site uSwitch has cautioned that without providing a meter reading, millions could end up being charged at the new, higher tariff rate for both October and potentially part or all of September, resulting in unnecessary extra costs.
On average, the cost difference for one week's energy usage between the rates of October and September is £18.81 per household amounting to £186 million across the UK. If the new October tariff were applied to the entirety of September, it would mean an additional charge of £75.24 per household.
uSwitch advises: "To avoid the higher price cap which comes into effect on 1 October, households on standard variable tariffs (SVTs) who don't have a smart meter should record and submit their meter readings before Tuesday. Those on SVTs without a smart meter who fail to submit meter readings on or around 1 October risk having some of their usage estimated and possibly charged under the new higher rates."
"A fixed tariff could help households avoid peak winter rates and give financial stability for at least a year. Some of these deals are up to 7 percent below the predicted October price cap.
"The difference between a week's worth of energy at October's rates compared with September's is £18.81 for the average household. Therefore, if those ten million households didn't submit a reading by 1 October and their usage was estimated, just a week's worth of energy at the more expensive rates could see them overpaying by £186 million in total."
A study conducted by the company revealed a worrying number of households that haven't recently submitted a meter reading because they either don't know how to read their meter (14 percent), or they don't know where their meter is located (12 percent). The price comparison website is also encouraging households to consider looking for a new fixed rate deal after several energy firms introduced new tariffs that are set below the new price cap coming into effect next week. These could result in annual savings of approximately £140-£150.
uSwitch stated: "A fixed tariff could help households avoid peak winter rates and provide financial stability for at least a year. Some of these deals are up to 7 percent below the predicted October price cap."
Ben Gallizzi, an energy expert at Uswitch.com, commented: "With energy prices rising next week, it's crucial that households submit a meter reading, with a £19 difference between the cost of a week's energy at September's prices compared with October. "A fixed tariff could help households avoid peak winter rates and give financial stability for at least a year. Some of these deals are up to 7 percent below the predicted October price cap.
Ben Gallizzi, energy expert at Uswitch.com, said: "Customers who don't have a smart meter should aim to submit their readings before or on Tuesday 1 October, so their supplier has an updated and accurate view of their account.
"If you delay submitting your readings, some of your September energy usage could end up being estimated and therefore charged under the higher October rates. Try making this task a monthly habit for billing accuracy. Households are also advised to see whether now is the time to change their energy tariff, to beat the October price hikes. There are a number of fixed tariffs worth considering right now.
"By opting for a fixed deal, you're locking in those rates for the duration usually 12 months which means households could have price certainty and avoid the ups and downs of the price cap. ".
Energy bill checklist
Check your meter readings are up to date. If you don't have a smart meter, submit your latest readings on or around 1 October to ensure you're charged the correct amount for the gas and electricity you've used. You should regularly submit meter readings to avoid over or under paying on your bill.
Track your usage. It's worth monitoring how much energy you're using by downloading the free Uswitch app. The app connects to your smart meter and offers regular insights into your household energy usage and handy energy-saving tips.
Consider switching your energy tariff. With energy rates set to increase from October, it's an ideal time to evaluate your options and secure lower rates. Currently, there are several reasonably priced fixed tariffs available on the market.
