British Gas customers are urged to make a check on Wednesday as household energy bills increase again.
Regulator Ofgem has confirmed that energy bills will rise by 1.2% from January 1 as its new price cap takes effect.
The increase will take the typical bill for households in England, Scotland and Wales up to £1,738, from the current £1,717, adding an extra £21 to costs per year – or £1.75 more per month.
The price cap limits the amount an energy supplier can charge for units of gas and electricity and it also impacts the standing charge, which is a daily cost per fuel type set by Ofgem. But it isn’t the absolute maximum price households will pay for energy as it is based on usage, so those that use more energy will pay more.
The cap applies to households on standard variable tariffs, which change every three months depending on the wholesale price of energy. By comparison, households on a fixed tariff pay a set amount for the duration of their contract and aren’t subject to the price cap.
To avoid being overcharged and paying out more than necessary, British Gas customers are urged to take an up-to-date meter reading as the price cap changes on January 1.
Households will need to submit a meter readings on Wednesday and send them to British Gas by January 14 to make sure they’re being charged correctly.
Accurate readings will stop energy suppliers from estimating your usage and potentially overcharging you. You should aim to take the reading on January 1 and keep a date-stamped photo as proof. Households on a prepayment meter don’t need to do this as they pay for usage upfront.
British Gas said: “The new Ofgem price cap starts on 1 January. If you’re on a variable tariff, take meter readings on 1 Jan and send them to us by 14 Jan. We’ll use them on your next bill. On a fixed tariff or have smart/prepay meters? You don’t need to send them.”
If you think your bill is not reflective of the new rates you can challenge it with British Gas, providing you have accurate and up-to-date information.
