Bill Payers Urged to Submit Meter Readings

Experts are urging energy consumers across England, Wales and Scotland to submit accurate meter readings as gas and electricity prices increase this October.

The change, driven by Ofgem's price cap, will raise the annual energy bill for a typical household by approximately £149, bringing the average bill to £1,717.

Why Meter Readings Matter

Energy experts are currently stressing the importance of submitting meter readings to avoid being charged for estimated usage at higher rates. Submitting a reading now ensures that energy suppliers only bill consumers for the energy they use instead of charges based on estimates.

Concerns about bills based on estimates aren't a concern for those with smart meters, which automatically submit readings. However, others relying on manual submissions should act quickly, especially as energy prices have increased for the coldest months when consumption typically rises.

The Price Cap

The price cap, which limits the rates energy suppliers can charge per unit of gas and electricity, is typically adjusted by Ofgem every three months. This cap affects 27 million homes across England, Wales and Scotland. While energy prices fell earlier in 2024, they have now risen, with the average household expected to pay an additional £12 per month on average.

The cap’s primary purpose is to protect consumers from excessively high charges, but its adjustments still result in changes to monthly bills. Those on variable tariffs, whose rates fluctuate with the cap, will feel the effects more acutely than those locked into a fixed tariff.

Increasing Costs

The recent price rise affects not just the cost per kilowatt-hour (kWh) but also the daily standing charges, which have gone up by a penny a day for both gas and electricity. These standing charges cover the costs of maintaining the energy network. For a typical household, the current cap for gas is 6.24p per kWh, and the cap for electricity is 24.5p per kWh.

This price cap means households using a standard amount of energy (around 2,700 kWh of electricity and 11,500 kWh of gas annually) can expect an annual bill of £1,717. However, exact amounts will depend on individual usage. Prepayment customers, often more vulnerable, will pay slightly less on average at £1,669 a year, while those paying by cash or cheque will see higher bills of £1,829.

Winter Challenges

This latest increase comes at a challenging time for many. Unlike winter, when cost-of-living payments helped ease the burden, most low-income households won't receive any extra payments in 2024. Additionally, about 10 million pensioners will no longer receive the universal Winter Fuel Payment, with only those on certain benefits still eligible.

Charities are warning that many households are struggling to keep up despite the price cap being lower than last winter. Over £3.7 billion is owed in energy debt across the UK, with organisations like the Money Advice Trust highlighting the need for urgent financial support for households in arrears.

Looking ahead, however, there is a slither of hope for consumers. Energy consultancy Cornwall Insight has forecast a 1% drop in energy bills in January 2025, bringing the typical annual bill to around £1,697. But with the cost of living continuing to rise and the potential for colder-than-usual weather, a modest reduction may not be enough to alleviate the strain on struggling households.

Help for Vulnerable Households

Despite the overall reduction in financial support, some pensioners may still be able to get help. Many low-income pensioners still need to take advantage of Pension Credit, which can unlock additional benefits such as the Winter Fuel Payment. The Government encourages pensioners to check their eligibility via its online calculator or by calling a dedicated helpline on 0800 99 1234.

Pension Credit is worth an average of £3,900 annually, which could be crucial for those struggling with rising energy costs.

Be Proactive

Consumers must stay informed and proactive as energy prices rise and the coldest months get closer. Submitting meter readings, checking eligibility for benefits and exploring support options can all help households manage the impact of rising energy bills. Suppliers and charities are offering support, but it’s up to consumers to ensure they’re not left out in the cold.

How Can I Save Money on Energy Bills?

With uncertainty over high energy bills and the current state of the UK energy market, consumers are looking for ways to save money on their energy more than ever. At UKPower, we can help you compare gas and electricity suppliers to find the cheapest energy prices, switch to a better deal and cut the cost of your energy bills.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.

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