The average household energy bill is to fall to its lowest point in two years from next month after Ofgem lowered its price cap in response to wholesale prices
Families are being encouraged to send in their energy meter readings this weekend to avoid paying too much.
Around 10 million households should do this to make sure they don’t overpay when cheaper prices start on April 1. Next month, the average household energy bill will drop to its lowest point in two years.
This is because Ofgem, the energy regulator, has lowered its price cap due to wholesale prices going down. The price cap is being reduced by 12.3% from the current £1,928 for a typical dual fuel household in England, Scotland and Wales to £1,690. This means a saving of £238 over a year or about £20 a month.
In April, the average household on a standard variable tariff (SVT) is expected to spend £127 on energy. This is less than the £205 spent in March, thanks to cheaper rates and less use as the weather gets warmer. Those on SVTs who don’t have a smart meter and don’t send in meter readings around April 1 might be charged at the old, more expensive rates for some of their usage after that date.
Uswitch warned that the difference between a week’s worth of energy at the old rates compared with a week in April was £4.65 for the average household. A survey for the comparison site found that nearly a fifth of households without a smart meter (18%) haven’t sent in their meter readings in the last three months. And 4% haven’t done so for a whole year.
Suppliers who haven’t gotten meter readings have to estimate their charges, which means households might either pay too much or too little. Uswitch mentioned that 24% of those who failed to submit readings in the last three months simply forgot about it, while 17% thought it was too fidgety and a hassle.
However, 14% of those yet to send in readings didn’t know how to read their meter, and 12% couldn’t even point out where their meter was. Additionally, 22% of households confessed to making blunders when sending in their meter readings. Mishaps such as confounding gas and electricity meters or jotting digits in the wrong sequence were the most typical.
Ben Gallizzi, speaking as Uswitch.com’s energy spokesman, urged: “We urge any households without a smart meter to submit their meter readings this bank holiday weekend, so their supplier has an updated and accurate view of your account on or around April 1.”
“This is when the next energy price cap comes into effect, which will see the rates that households on standard variable tariffs pay for their energy fall for April, May and June. If you delay submitting your readings, some of your energy usage could end up being charged under the higher rates we’re currently facing.”
“All households without a smart meter should ideally submit a meter reading every month to improve the accuracy of their bills.” An online survey carried out by Opinium from March 1-5 involved 2000 UK adults.
