Millions of households are being urged to submit their gas and electricity meter readings before next Wednesday, or risk overpaying on their energy bills.
More than seven million homes on standard variable tariffs without smart meters could be affected when Ofgem’s price cap increases on 1 October. Consumer experts warn that without up-to-date readings, energy suppliers may charge part of September’s usage at October’s higher rates.
Potential £125m in unnecessary charges
According to Uswitch, the price difference for a single week’s energy is about £17 per household. If every affected household failed to submit readings, it could amount to £125m in collective overpayments.
From next week, the typical annual dual-fuel bill will rise by just over £35, taking the cap to £1,755 a year. The cap is reviewed quarterly and reflects wholesale costs as well as network charges.
Advice for households
Ben Gallizzi, energy expert at Uswitch, urged people to take action:
“Customers who don’t have a smart meter should submit their readings before or on Wednesday 1 October. It ensures your supplier has an accurate view of your account and prevents charges at October’s higher rates.”
He also advised households to check whether their supplier offers off-peak energy schemes, which could reduce bills further.
Figures show that 20% of homes without smart meters have not submitted meter readings in three months, while 6% haven’t submitted in a year. In these cases, bills are based on estimates, leaving households at risk of paying more than they owe.
Future outlook: more rises likely
Energy analysts warn that global instability and fluctuating wholesale prices could mean further increases in 2025. After a prolonged lack of competitive deals, fixed tariffs are once again appearing on the market.
There are currently 25 fixed deals cheaper than the October price cap. The lowest, from Outfox Energy, offers a 12-month fix at £1,540 a year – a saving of around £215 compared with the new cap.
Scott Byrom, chief executive of The Energy Shop, said: “The best tariffs are now significantly below the cap, but households must act quickly to secure them.”
