Almost 11 million households risk overpaying energy bills

Nearly 11 million households could risk overpaying on their energy bills by a collective £30 million if they delay submitting a meter reading before 1st July, research by Uswitch.com, the comparison and switching service, has found.

To benefit fully from the new cheaper price cap which comes into effect in July, households on standard variable tariffs (SVTs) who don’t have a smart meter should record and submit their meter readings before Monday.

The average household on an SVT with typical usage is expected to spend £83 on energy in July, compared with £127 in June. The reduction is down to a combination of cheaper rates and lower usage at the height of summer.

Yet, those on SVTs without a smart meter who fail to submit meter readings on or around July risk having some of their usage estimated and possibly charged under the older, more expensive June rates.

The difference between a week’s worth of energy at June’s rates compared to July’s is £2.78 for the average household. Therefore, if those 11 million households didn’t submit a reading by 1 July and their usage was estimated, just a week’s worth of energy at the more expensive rates could see them overpaying by £30 million in total.

Households which haven’t submitted a reading recently say it’s because they do not know how to read their meter (14%), or do not know where their meter is (12%).

Industry analysts suggest energy rates will rise again in October, meaning the average home with typical usage could pay £1,761, a 12% increase on the summer rates. Rates could stay that way throughout the winter into 2025.

There are a number of fixed tariffs available, which could help lower costs and give households financial stability for at least a year, with some up to 10% below the predicted October price cap.

Ben Gallizzi, Energy Expert at Uswitch.com, said “Households should be adding ‘read my energy meter’ to their to-do-list this weekend if they want to take full advantage of lower energy prices from July.

“Customers who don’t have a smart meter should aim to submit their readings before or on Monday 1 July, so their supplier has an updated – and accurate – view of their account.

“This is when the next energy price cap comes into effect, so if you delay submitting your readings, your energy usage could end up being estimated and therefore charged under the higher June rates. Try making this task a monthly habit for billing accuracy.

“Households are also advised to see whether now is the time to change their energy tariff, to beat the predicted October price hikes.

“There are a number of fixed tariffs worth considering right now. By opting for a fixed deal, you’re locking in those rates for the duration – usually 12 months – which means households could have price certainty and avoid the ups and downs of the price cap.”