Millions of Britons risk paying more for energy if they fail to submit meter readings before the price cap increases by 13% on Wednesday, according to energy experts. The estimated 5.3 million households on standard tariffs without smart meters have been urged to provide accurate readings to avoid being charged at new, higher rates for some of their June usage.
Price cap rise details
The energy price cap, set by regulator Ofgem, will increase on Wednesday, reflecting a spike in global energy prices caused by the war on Iran. Households paying by direct debit will see electricity charges rise from 24.67p per kilowatt hour (kWh) to 26.11p, while gas charges will increase from 5.74p per kWh to 7.33p. Based on these new rates, the average annual gas and electricity bill will rise by £221 to £1,862.
Expert advice on avoiding overcharges
Ben Gallizzi, an energy expert at price comparison website Uswitch, said: “Customers who don’t have a smart meter should submit their readings before or on Wednesday 1 July, so their supplier has an accurate view of their account.” He also advised those on standard tariffs to look for cheaper deals, noting that “there are currently 27 fixed deals available that are cheaper than July’s price cap.” Uswitch’s best buy table was topped by Outfox Energy at £1,577 per year for the average household, 15% below the July price cap.
Seasonal and future outlook
The higher rates take effect during warmer months when households typically use less heating, which may soften the immediate impact. Another price cap rise had been predicted for October, but that looks less certain after a recent interim peace agreement between the US and Iran led to declines in wholesale gas prices.
