Nearly ten million households in the UK are at risk of overpaying on their energy bills by a staggering £186 million if they fail to submit a meter reading before the upcoming deadline of October 1st. Research conducted by Uswitch.com, a leading comparison and switching service, has revealed the potential financial impact of missing this crucial deadline.
The looming threat of a higher price cap set to take effect on October 1st has put households on standard variable tariffs (SVTs) who do not have smart meters in a precarious position. By simply recording and submitting their meter readings before the deadline, these households can avoid the substantial increase in energy costs that is expected to hit in October.
According to Uswitch.com’s findings, the average household on an SVT with typical usage is projected to spend £55 on energy in September, a figure that is set to skyrocket to £135 in October. This sharp rise in costs can be attributed to a combination of higher energy rates and increased usage as the autumn season kicks in.
Households on SVTs without smart meters that neglect to submit their meter readings by October 1st run the risk of having some of their energy usage estimated and potentially charged at the new higher rates. The difference in cost for just a week’s worth of energy at October’s rates compared to September’s rates is estimated to be £18.81 for the average household. If all ten million households fail to submit their readings by the deadline and end up overpaying due to estimated usage, the total amount overspent could reach a staggering £186 million.
Industry experts from Cornwall Insight have also warned that energy rates are expected to rise again in January, further exacerbating the financial burden on households. With the average home facing a potential cost of £1,762 with typical usage, representing a 3% increase on autumn rates, the need for proactive energy management becomes even more critical.
To mitigate the impact of rising energy costs, households are advised to consider switching to fixed tariffs that offer price stability for at least a year. Some of these fixed deals are currently available at rates up to 7% below the predicted October price cap, providing an opportunity for significant savings.
Ben Gallizzi, an energy expert at Uswitch.com, emphasized the importance of taking action before the impending price hikes, stating, “With energy prices set to rise next week, it’s crucial for households to submit a meter reading to avoid unnecessary overpayments. By making this a monthly habit, households can ensure billing accuracy and potentially save significant amounts on their energy bills.”
In addition to submitting meter readings, households are encouraged to explore alternative energy tariffs to find better deals that can help them beat the October price hikes. By opting for a fixed tariff, consumers can lock in lower rates for a specified period, offering price certainty and protection against fluctuating energy costs.
Uswitch.com has provided a checklist to help households keep their energy bills as low as possible:
1. Check: Ensure your meter readings are up to date and submit the latest readings if you do not have a smart meter.
2. Track: Monitor your energy usage using tools like the Uswitch app to stay informed and receive energy-saving tips.
3. Change: Consider switching to a fixed tariff to secure lower rates and avoid the impact of price increases in the coming months.
By following these guidelines and taking proactive steps to manage their energy usage and tariffs, households can effectively navigate the changing landscape of energy costs and make informed decisions to save money on their bills.
