Nearly ten million households risk overpaying on their energy bills by a collective £186 million for just one week of heat and light, it is claimed.
Industry experts say it is vital these customers take and submit an accurate gas and electricity meter reading for October 1, which is when price cap tariffs rise by 10 percent.
Price comparison website uSwitch warned that a failure to do so could see millions of people charged the new higher tariff for both October and part or all of September, so leaving them out of pocket.
The difference of just one week’s worth of energy at October rates compared with September is £18.81 per home on average – and £186 million for the UK. If people were to be charged the new higher October tariff for the whole of September that would amount to an extra £75.24.
uSwitch said: “To avoid the higher price cap which comes into effect on 1 October, households on standard variable tariffs (SVTs) who don’t have a smart meter should record and submit their meter readings before Tuesday.
“Those on SVTs without a smart meter who fail to submit meter readings on or around 1 October risk having some of their usage estimated and possibly charged under the new higher rates.
“The difference between a week’s worth of energy at October’s rates compared with September’s is £18.81 for the average household. Therefore, if those ten million households didn’t submit a reading by 1 October and their usage was estimated, just a week’s worth of energy at the more expensive rates could see them overpaying by £186 million in total.”
Research for the company found an alarming number of households which haven’t recently submitted a reading say it’s because they do not know how to read their meter (14 percent), or do not know where their meter is (12 percent).
The price comparison website is also urging households to consider shopping around for a new fixed rate deal after a number of energy firms launched new tariffs that are fixed below the new price cap that comes into effect next week. These will deliver annual savings of around £140-£150.
uSwitch said: “A fixed tariff could help households avoid peak winter rates and give financial stability for at least a year. Some of these deals are up to 7 percent below the predicted October price cap.
Ben Gallizzi, energy expert at Uswitch.com, said: “With energy prices rising next week, it’s vital that households submit a meter reading, with a £19 difference between the cost of a week’s energy at September’s prices compared with October.
“Customers who don’t have a smart meter should aim to submit their readings before or on Tuesday 1 October, so their supplier has an updated – and accurate – view of their account.
“If you delay submitting your readings, some of your September energy usage could end up being estimated and therefore charged under the higher October rates. Try making this task a monthly habit for billing accuracy.
“Households are also advised to see whether now is the time to change their energy tariff, to beat the 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.”
Energy bill checklist
Check your meter readings are up to date. If you don’t have a smart meter, submit your latest readings on or around 1 October 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 your usage. It’s worth monitoring how much energy you’re using by downloading the free Uswitch app. The app connects to your smart meter and offers regular insights into your household energy usage and handy energy-saving tips.
Change your energy tariff. Energy rates will rise from October, so now’s a great time to assess your options and lock in lower rates. There are a number of reasonably priced fixed tariffs on the market right now.
Some of cheaper fixed energy tariffs
Supplier Tariff
Outfox The Market Outfox the Price Cap (Oct 24) Fix’d Dual v1.0 £1,600 £117
British Gas Fixed Tariff 12M v16
Co-op Energy Co-op 15M Fixed September 2024 v1
Octopus Energy Octopus 15M Fixed September 2024 v2 £1,626 £
E.ON Next Next Gust 12m v11 / Next Fixed 12m v26 £1,626
Sainsbury’s Energy Sainsburys Fix and Reward Fixed 12m V26 £1,656 £61
EDF Energy Essentials Fixed 1Yr Sep25v3 £1,658 £
OVO Energy 1 Year Fixed 28 August 2024
Co-op Energy Co-op Community Power 15M Fixed £1,691
So Energy So Sunflower 1yr Fixed
* Energy deals are constantly being added and removed
