BILL CHECK
Exact date millions of households must take meter reading ahead of energy price cap change
We explain when to check your meter for the final time
MILLIONS of households across England, Scotland, and Wales will see their energy bills shoot up from October 1.
The energy watchdog, Ofgem, has confirmed that the new energy price cap will be 10% higher than it was from April to July.
According to the regulator, the new cap will increase typical bills from £1,568 to £1,717 a year – an increase of £149.
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However, it also says that the cap is £117 cheaper than it was for the same three months last year.
Danni Hewson, AJ Bell head of financial analysis, said: “Inflation might now be hovering around ‘normal’ levels, but the price hikes experienced over the past couple of years have dented people’s standard of living and they will be faced with another winter where they’re having to watch thermostats like a hawk."
And, there are already warnings that January could bring another small increase to energy prices.
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To make sure your bills are accurate, households on standard variable tariffs (SVTs) should submit meter readings as soon as the new cap is implemented.
Submitting a reading helps prevent your supplier from estimating your usage, which could lead to being charged for energy at the new higher rate, when it was used in the cheaper months.
It’s worth noting that your energy bills could rise, particularly if you used a lot of energy in September. But having an accurate reading means that you’ll be charged fairly and can help avoid disputes.
Who should submit a meter reading?
If you are one of the 29 million households on an SVT and you don’t have a smart meter or a pay-as-you-go meter, you should submit a meter reading.
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SVTs are regulated by the price cap, and without a smart meter, your readings are not automatically sent to your provider.
If you don’t provide a reading by October 1, your provider will estimate your usage.
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In fact, to ensure that all your bills are accurate, it’s best to submit a reading once a month, which means that you’re only charged for what you actually use.
If you have a smart meter
If you have a smart meter, you do not need to submit a reading, as your data is sent automatically to your supplier.
However, it’s a good idea to ensure that your meter is functioning correctly. Take a photo of your meter on October 1 and compare it with the information in your online energy account or on your paper statements.
If you prepay for energy
If you use a prepaid meter, you don't need to submit readings. As you pay for energy upfront, you’ll only ever pay for what you’ve used.
However, energy purchased before October 1 will be cheaper than energy bought after the cap increase comes in.
If finances allow, you should consider topping up on September 30, to get the most energy possible at the cheaper rate.
If you're on a fixed rate
Fixed-rate energy contracts aren’t governed by the price cap.
Your rate is locked in for the duration of your deal, and it could be higher or lower than the SVT rate.
It's worth reviewing your contract's end date to see if switching to an SVT or another provider might be more cost-effective.
Hewson said: “There are now opportunities for households to fix their bills or switch to other providers, but consumers need to read the small print carefully because many come with exit penalties. What’s clear is that we are going to have to get used to bills remaining elevated as global energy markets remain volatile.”
How to submit a meter reading
Most energy companies make it really easy to submit a meter reading. You can usually do this via your online account or on a mobile app.
Log in and provide the latest numbers on your energy and gas meters. Some companies also accept readings over the phone, through WhatsApp, or via SMS.
Check your supplier’s website for to see what options are available. The easiest approach is usually to take a picture of your gas and electricity meters, so you have the numbers ready when it’s time to submit.
What is the energy price cap and how is it changing?
Ofgem adjusts the energy price cap every three months.
The cap limits the maximum rate energy suppliers can charge per unit of energy in England, Scotland, and Wales.
However, it’s important to know that the cap doesn’t limit your total bill.
The annual costs that Ofgem provides are based on average usage, if you use more energy than the typical household, your bill will be higher.
On October 1, the maximum gas rate will rise from 5.48p per kWh to 6.24p, and electricity will increase from 22.36p per kWh to 24.5p.
Unfortunately, standing charges - the daily fixed rate for connecting to the grid – are also increasing.
This means you'll have to pay £6.49 a week, or £337.25 a year, just to stay connected to both electricity and gas, regardless of usage.
The actual rates you are charged will depend on where you live, how you pay your bill and the type of meter you have.
Pensioners urged to check if they qualify for Pension Credit
The government has announced that Winter Fuel Payments will no longer be universal, meaning millions of pensioners could lose out on the £300 benefit.
However, those who receive Pension Credit will still get the payment, so it’s really important to check if you qualify.
Joanna Elson CBE, chief executive at Independent Age said: “There could be up to 1.2 million older people eligible for Pension Credit who don’t receive it”.
Hewson added: “For around 10 million older people who are also faced with having to make do without their winter fuel payments, it adds insult to injury. Some pensioners will be able to manage, but others will find the winter months particularly tough.”
Independent Age is campaigning for the government to delay the changes, particularly given the new, higher energy cap.
Crucial to claim Pension Credit if you can
HUNDREDS of thousands of pensioners are missing out on Pension Credit.
The Sun's Assistant Consumer Editor Lana Clements explains why it's imperative to apply for the benefit..
Pension Credit is designed to top up the income of the UK's poorest pensioners.
In itself the payment is a vital lifeline for older people with little income.
It will take weekly income up to to £218.15 if you’re single or joint income to £332.95.
Yet, an estimated 800,000 don't claim this support. Not only are they missing on this cash, but far more extra support that is unlocked when claiming Pension Credit.
With the winter fuel payment - worth up to £300 now being restricted to pensioners claiming Pension Credit - it's more important than ever to claim the benefit if you can.
Pension Credit also opens up help with housing costs, council tax or heating bills and even a free TV licence if you are 75 or older.
All this extra support can make a huge difference to the quality of life for a struggling pensioner.
It's not difficult to apply for Pension Credit, you can do it up to four months before you reach state pension age through the government website or by calling 0800 99 1234.
You’ll just need your National Insurance number, as well as information about income, savings and investments.
Elson said: “As the weather starts to turn colder, older people in financial hardship up and down the country are worried about their budgets. Many are on a low fixed income, and they will now need to find more money to cover their rising energy bills.
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“To make matters worse for older people in poverty, this bill increase coincides with the ending of the Winter Fuel Payment for people not receiving Pension Credit.
"We urge the UK Government to delay its Winter Fuel Payment decision to ensure the lives of older people in financial hardship are not put at risk as we approach winter.”
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