Energy experts urge households to take a meter reading before July price cap rise

The energy experts at Go.Compare are urging households to take a meter reading on 30 June, before the energy price cap rises by 13% on 1 July.

From the start of next month, the average annual gas and electricity bill for a typical household paying by Direct Debit will rise from £1,641 to £1,862 under Ofgem's latest price cap. This is equivalent to a rise of £221 a year or around £18.40 a month for a typical household.*

With warm weather on the horizon again and Brits turning to fans and air-con units to keep cool, small price increases can really add up. For example, a portable air con unit used for eight hours a day could cost Brits more than £17 a week from July 1st.**

Gareth Kloet, energy expert at Go.Compare, said: “Looking at appliance costs over a week or month gives a much clearer picture than focusing on a single hour of use. The extra cost of a single load of washing or one oven cycle may only be a few pence, but households use energy constantly and across lots of different appliances.

“That is why taking a meter reading on 30 June is so important. It helps make sure your supplier has an accurate record of the energy you used before the new, higher rates come in, rather than estimating your usage and potentially applying the wrong rate to part of your bill.

“If you have a smart meter, your readings should be sent automatically, but it is still worth checking that your account is up to date. If you do not have a smart meter, submit a reading to your supplier on or as close to 30 June as possible.”

The price cap is reviewed quarterly by Ofgem, the energy regulator, and puts a limit on the unit rates and standing charges suppliers can set for customers on standard variable and default tariffs. It is not a cap on total bills, so households that use more energy will pay more.

Gareth adds: “The price cap does not protect you from using more energy, and it does not mean every household will pay the same amount. Your bill depends on your usage, where you live, how you pay and whether you are on a fixed or variable tariff.

“Now is a sensible time to check your current tariff, look at your standing charges and unit rates, and compare your options. If you are considering switching to a fixed contract, make sure you understand the terms, including how long the deal lasts and whether there are any exit fees.

“And if you are struggling with bills, contact your supplier as soon as you can. Energy providers are required to support customers in financial difficulty and may be able to help with a payment plan or other support.”

To learn more about the energy price cap, visit Go.Compare’s energy price cap guide. For additional information on switching energy providers, Go.Compare has also put together a guide to switching energy supplier. 

You can also see how much your energy bill is likely to rise from July 1st here.