Worried families breathed a sigh of relief as the government stepped in to curtail soaring energy bills with the announcement of the energy price guarantee.

For the next two winters, average energy bills will stand at £2,500 a year, shaving £1,000 off the typical energy bill for the 24 million people on default tariffs.

Had the energy price guarantee not been confirmed, households were facing an 80% hike in prices from the current £1,971 (set in April) to £3,549 from 1 October 2022.

However, it’s important to know that the energy price guarantee doesn’t mean £2,500 is the maximum you’ll pay. It caps the unit rate and standing charge so your bills may be higher or lower than this headline, average rate as it will be based on your usage.

Important to submit meter readings

Another important point to note is that even though energy prices won’t rise as much as initially announced by the industry regulator Ofgem, households without a smart meter should note down their energy readings.

Sarah Broomfield, energy expert at comparison site Uswitch.com, said: “Although the energy price guarantee has averted bills from soaring as much as was feared, it’s important to remember that rates are still increasing.

“If you do not have a smart meter, it is worth submitting your meter readings on or just before 30 September. This will ensure your bills are accurate, and that all your energy use from recent months is calculated under the old rates rather than under the new October charges.”

Broomfield added: “Regularly submitting meter readings to your supplier is a good habit to get into, and will help ensure your bills are accurate.

“If you have a smart meter, your readings will be sent to your supplier automatically.”

And for anyone thinking about providing false or inflated readings to benefit from the lower, pre-guarantee rates, Martin Lewis, founder of MoneySavingExpert previously warned “it’s fraud”.

Related: The £2,500 energy price guarantee isn’t the maximum bill you’ll pay.