Households can make three checks to help slash their energy bills as the price cap rises in just a few days’ time. Ofgem‘s energy price cap, which sets the maximum energy rates paid by homes on standard tariffs, will rise by 4% from £1,663 to £1,723 for an average household on Thursday, October 1.
The energy regulator’s cap limits how much energy suppliers can charge for each unit of gas and electricity Brits use. While households can’t decide what the cap is, they can still take steps to help reduce their bills. This includes paying by Direct Debit, taking a meter reading and checking for a fixed deal.
Paying by Direct Debit is often a bit cheaper than covering your energy bill in other ways because it costs suppliers more for customers who don’t.
Be aware though that sometimes the Direct Debit can be set too high, meaning you could end up paying more than you should.
If your supplier increases your monthly Direct Debit payment, call them and ask for an explanation.
In the winter months, suppliers might up the amount taken by Direct Debit to cover any extra energy usage.
For anyone who is struggling to make their Direct Debit payments, they should contact their supplier to explore different methods.
If meter readings aren’t accurate and regular, energy suppliers will have to estimate usage before they bill you.
People on standard tariffs who do not have a smart meter and don’t submit meter readings on or around October 1 risk having some of their September usage incorrectly charged under the newer, more expensive rates.
Ben Gallizzi, energy expert at Uswitch.com, said: “Yet another energy price hike will hit millions next week, at the same time many reach for the thermostat – but there are actions households should be taking.
“Submitting a meter reading, if you don’t have a smart meter, before or on Thursday, October 1, will ensure the energy used is charged at the correct rates and not estimated by a supplier.”
Uswitch said the price hike is avoidable as there are fixed energy deals available which undercut the October rates.
The price comparison website identified the cheapest tariff as an 18-month deal from Fuse Energy, at £1,688 a year for a typical home.
This is £35 below the October price cap and £429 below the average January forecast, according to data collected by Uswitch on September 24.
Mr Gallizzi said the October 1 meter reading deadline applies to the 15 million households on standard tariffs who want to beat the hike by locking in a lower-rate fixed deal before energy costs “rocket” this winter.
He added: “Predictions currently suggest there will be a third consecutive price hike on the way in January with rates forecast to jump a staggering 23% in the new year.
“Not all energy deals are the same, and prices vary wildly, so households should not simply accept the first deal offered by their current supplier.
“It’s vital to compare, and it takes just minutes to see options tailored to your personal energy usage. The price cap is going up, but your rates don’t have to.”
