Experts are urging households to ‘read’ their smart meters as soon as possible to ensure they have lower energy bills.
This warning from Go. Compare Energy anticipates Ofgem’s energy price cut on July 1, which sets the maximum amount companies can charge per unit of energy and fixed costs to households with average consumption.
Between the start of next month and September 30, the average household on a fixed tariff will see their energy bills fall by £122 over that period.
As such, Ofgem’s price cap will drop from £1,690 to £1,568, meaning a potential saving of seven per cent for customers.
However, experts are reminding consumers to submit their smart meter readings by June 30 or risk missing out on these savings altogether.
The reason for this is that energy suppliers cannot charge their customers more for energy than they would otherwise have actually consumed.
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Ofgem will lower the price cap next week
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This means millions of households have just a few days left to significantly reduce their energy bills amid the ongoing cost of living crisis.
Households have been forced to contend with record high gas and electricity costs due to external pressures on the wholesale energy market and the impact of the Russian invasion of Ukraine.
For the period April 1 to June 30, Ofgem reduced its price cap to £1,690 for a typical dual-fuel household paying by direct debit, a significant drop from £1,928.
Last year the regulator reduced the limit to £1,976 between July and September, with subsequent cuts to £1,834 per year from October to December 2023.
However, in the first three months of 2024, Ofgem’s price cap rose slightly to £1,928 per year in light of the colder weather in winter.
Gareth Kloet, energy spokesperson for Go.Compare Energy, explained why it is important for families to request a current smart meter reading.
He explains: “If you read your meter on June 30 before the price drop comes into effect, this means your energy company will not be able to charge you the higher rate for the units you use after that date.
“Even for those who have a smart meter, it is a good idea to take regular meter readings to ensure your energy use is recorded accurately and that you are charged the correct amount for the units you use .
“Any drop in household costs will undoubtedly be welcomed by people in the UK, but with the ongoing cost of living crisis, many may still be looking for ways to reduce their spending. Although we cannot control the price cap , there are things you can do to help save on your home energy costs.
“For example, if you’re not already doing this, choosing to pay your energy bill by direct debit could save you some money as a number of energy suppliers will give you a discount if you pay this way. It also means you don’t have to worry make you forget to pay a bill.”
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The energy expert also shared advice for households considering switching deals to secure a cheaper tariff.
Kloet adds: “The energy market is still subject to fluctuations, but we are seeing more and more deals coming onto the market.
Take a good look at the rate you use and any associated cancellation costs. It may then be worthwhile to check on a comparison site to see what options are available to you.
“And if you’re lucky enough to have a credit balance with your energy supplier, try to keep it in the bank in preparation for the winter months. But if you’re struggling to make payments, talk to your energy supplier as they have a duty of care owed to you.”