Experts are urging households to ‘read’ their smart meter as soon as possible to ensure lower energy bills.
This warning from Go. Compare Energy comes ahead of Ofgem’s energy price cut on July 1, which sets the maximum amount businesses can charge per unit of energy and a flat charge for 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 in that period.
As such, Ofgem’s price cap will drop from £1,690 to £1,568, meaning a potential seven per cent saving for customers.
But experts are reminding consumers to submit their smart meter readings by June 30 or risk losing out on those savings entirely.
This is because energy suppliers will not charge customers for more energy than they would otherwise actually use.
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Ofgem is reducing the price cap next week
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This means millions of households have just days left to face significant increases in 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 Russia’s invasion of Ukraine.
From 1 April to 30 June, Ofgem reduced its price cap to £1,690 for a typical dual-fuel household paying by direct debit, a significant drop from £1,928.
In the last year, the regulator reduced the limit to £1,976 between July and September, with a subsequent reduction to £1,834 annually from October to December 2023.
However, in the first three months of 2024, Ofgem’s price cap jumped slightly to £1,928 a year in light of colder winter weather.
Gareth Kloet, energy spokesperson for Go.Compare Energy, explained why it’s important for families to read up-to-date smart meters.
He explained: “Meter readings on June 30 before the price drop comes into effect will mean your energy company will not be able to charge you the higher rate for any units you use after that date.
“Even for those with a smart meter, it’s a good idea to read your meters regularly to make sure your energy usage is being captured accurately and that you’re being charged the right amount for the units you use.
“Any reduction in household costs will no doubt be welcomed by UK residents, but with the ongoing cost of living crisis, many may still be looking for ways to reduce their spending. While we can’t control the price cap, there are things you can do to save on your energy costs at home.
“For example, if you’re not already doing so, choosing to pay your energy bills by direct debit can save you some money, as many energy suppliers will give you a discount for paying this way – it also means you don’t have to worry about forgetting to pay your bill. “
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The energy expert also shared advice for households considering changing their offer to secure a cheaper tariff.
Kloet added: “The energy market is still subject to fluctuations, but we are starting to see more and more deals coming into the market.
“Look at what plan you’re on and any exit fees that come with it, then it might be worth looking at a comparison site to see what options are available to you.
“Also, if you’re lucky enough to have a credit balance with your energy provider, try to keep it in the bank in preparation for the winter months. But if you’re struggling to pay, talk to your energy provider as they have a duty to take care of you.”