These households on standard variable tariffs (SVTs) are at risk of overpaying their energy bills to the tune of £30m if they don’t take a meter reading this weekend.
Uswitch.com found that an average household on an SVT is expected to spend £83 on energy in July, compared to £127 in June, thanks to the new, cheaper energy price cap that comes into effect from Monday 1 July.
This will be welcome news for billpayers, who have battled with soaring rates for years.
You are covered by the energy price cap if you pay for your electricity and gas by either:
- Standard credit (you pay when you get your bill)
- Direct debit
- Prepayment meter, or
- Economy 7 (E7) meter
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If you’re on an SVT without a smart meter and fail to submit a meter reading on or around 1 July, you risk having some of your 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.
Rates to rise from October
Industry analysts have suggested that energy rates will increase again in October, meaning the average home may pay an increase of 12% versus the summer rates. And rates could stay like that throughout winter and into 2025.
Ben Gallizzi, energy expert at Uswitch, 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.
“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.
“The easiest way to assess your options is to run a comparison at Uswitch.com, where you’ll be able to see available tariffs with personalised costs based on your household consumption.”
How to keep energy bills low
Uswitch has prepared a checklist to enable billpayers to ensure their energy bills stay as low as possible:
- CHECK: Check your meter readings are up to date. If you don’t have a smart meter, submit your latest readings on or around 1 July to ensure you’re charged the correct amount for the gas and electricity you’ve used. You should regularly submit meter readings to avoid over- or under-paying on your bill.
- TRACK: Track your usage. Although bills are generally lower in the spring and summer, it’s worth monitoring how much energy you’re using by downloading the free Utrack by Uswitch app. The app connects to your smart meter and offers regular insights into your household energy usage and handy energy-saving tips.
- CHANGE: Change your energy tariff. Is it time to switch? Energy rates are predicted to rise from October, so now’s a great time to assess your options and lock in lower summer rates. There are a number of reasonably priced fixed tariffs on the market right now.
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