Millions of households across the UK are being urged to submit their energy meter readings by Wednesday, June 30th, to avoid potentially higher charges on their upcoming bills. An estimated 5.3 million homes on standard energy tariffs, without smart meters, risk being overcharged for some of their June energy consumption if they do not provide an up-to-date reading before the new price cap takes effect.
The energy price cap, regulated by Ofgem, is scheduled to increase by 13% from July 1st. This uplift means that households who fail to submit their readings could see some of their energy usage from June charged at the new, more expensive rates. For those paying by direct debit, electricity unit charges will rise from 24.67p to 26.11p per kilowatt hour (kWh), while gas charges will increase from 5.74p to 7.33p per kWh. This shift is projected to push the average annual gas and electricity bill up by £221, reaching £1,862.
The increase in the price cap reflects a spike in global energy market prices. Ben Gallizzi, an energy expert at Uswitch, emphasised the importance of submitting readings: “Customers who don’t have a smart meter should submit their readings before or on Wednesday 1 July, so their supplier has an accurate view of their account.” He also highlighted that despite the cap rising, consumers have options to mitigate the impact. There are currently 27 fixed-rate deals available that are cheaper than the July price cap, with some offering savings of up to 15% below the new cap for the average household, such as Outfox Energy's £1,577 annual tariff.
While any bill increase is unwelcome, the timing of this rise during warmer, brighter months may offer some respite for households, as heating usage typically decreases. However, ongoing financial pressures mean families are still looking for ways to manage costs. Government support schemes such as Universal Credit and the Warm Home Discount can offer some relief to eligible households. Organisations like Citizens Advice and MoneySavingExpert provide valuable guidance on energy efficiency and managing utility costs.
Looking ahead, a further price cap increase had been anticipated for October. However, recent developments, including an interim peace agreement between the US and Iran, have led to a decline in wholesale gas prices, potentially making a further autumn hike less certain. Nevertheless, proactive steps now remain crucial for managing immediate energy expenses.