The price comparison site is urging more than seven million households on standard tariffs to submit a meter reading by the end of the month to ensure they benefit from lower energy rates from 1 July.
Warning to households without a smart meter
According to Uswitch, homes on a standard tariff with average usage are expected to spend £63 on energy in July, compared with £113 in June. The reduction is down to a combination of cheaper rates and lower use over the summer.
But those on standard tariffs who don’t have a smart meter and don’t submit meter readings on or around 1 July risk having some of their usage 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 £1.93 for the average household. Therefore, if those seven million households forget to read their meter by 1 July and are incorrectly charged by just a week’s worth of energy, they could risk overpaying by £14m in total.
Is it time to switch to a fixed energy tariff?
Uswitch is urging households to switch to a fixed deal while prices are still competitive. At the moment, there are 10 fixed deals available that are cheaper than the July price cap of £1,720. Calculations by the price comparison site show that the cheapest fixed deal on the market offers savings of about £145 per year compared with the July price cap for the average household.
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With conflict in the Middle East causing instability and uncertainty in wholesale energy prices, industry experts are expecting the October price cap to increase. This means that households could face an energy price hike as the colder autumn weather arrives.
Why you need to submit meter readings
According to Uswitch, a fifth (20%) of households without smart meters haven’t submitted their meter readings in the past three months, and 6% haven’t for a whole year. Not submitting meter readings means suppliers base bills on estimated usage – meaning some households could be overpaying, and others may not be paying enough.
A third (33%) of those who have not submitted their readings in the past three months said they don’t need to submit reading that often, while one in seven (16%) said they forget to.
Ben Gallizzi, energy expert at Uswitch.com, said: “Households should take a moment to read their energy meter this weekend if they want to make the most of lower energy prices from July.
“Customers who don’t have a smart meter should submit their readings before or on Tuesday 1 July, so their supplier has an updated – and accurate – view of their account.
“There’s a lot of uncertainty about global energy costs at the moment, which has led industry experts to predict a rise in energy bills and in the price cap this autumn.
“But households can get ahead of this possible price hike by fixing at cheaper rates now. Currently, there are a range of fixed deals currently available that are around £145 cheaper than the July price cap for the average household.
“If you can switch to a deal cheaper than the July price cap, now is a good time to make the change. We urge customers to run an energy comparison as soon as possible.”
