From July 1, UK households are advised to submit their energy meter readings promptly to benefit from a 7% reduction in the average annual energy bill, following Ofgem’s adjustment of the price cap to £1,568 to reflect lower wholesale prices.
UK Households Urged to Submit Energy Meter Readings Promptly After Ofgem’s Price Cap Reduction
According to the article in the Independent, starting July 1, around 10 million households in England, Scotland, and Wales have been told to give their energy meter readings promptly to their suppliers. This comes after Ofgem reduced the price cap by 7%, dropping it from £1,690 to £1,568 per year for typical dual-fuel homes in response to lower wholesale prices. This change means significant savings compared to last year’s cap of £2,074, especially for households on standard variable tariffs.
Households on these tariffs, especially those without smart meters, should send their gas and electricity readings close to July 1. This ensures they are billed correctly at the new lower rates. If readings aren’t submitted, there’s a risk of being charged at higher rates for energy meter readings used after this date. Estimated bills based on guesses might lead to paying too much or too little, so it’s crucial to provide accurate readings to avoid financial issues.
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£1,568: New Energy Price Cap Revealed: 10 Million Households Urged to Submit Meter Readings for Accurate Billing (PHOTO: The Irish News)
Experts Recommend Fixed Tariffs Amid Ofgem’s Potential Price Cap Changes
For July, households are expected to spend around £83 on meter readings, down from £127 in June due to reduced usage and the lower price cap. However, experts warn that Ofgem might increase the cap again in October before possibly reducing it in January 2025. To manage potential future price hikes, Uswitch recommends exploring fixed tariff options that lock in prices for about a year, offering stability and shielding against fluctuations in energy costs.
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