The upcoming energy price drops will have many breathing a sigh of relief, but there's one savvy thing people should do before they become official.
Ofgem's price cap comes into effect on Saturday, July 1 as costs are limited to £2,074 a year, a reduction from £2,500 a year. The price guarantee was brought in because energy bills were set to exceed £3,000, reports The Mirror.
In order to keep your usage - and billing - accurate, it's wise to take a meter reading before the price change is introduced. That means households should make sure to take down a meter reading before the clock strikes midnight on Friday evening.
Energy providers will make the adjustments automatically, but taking a meter reading on Friday before the price changes means your bill is as accurate as possible. The record will also help if you have to dispute a bill going forward.
For example, if your meter reading is lower than your estimate from your supplier, you can ask your provider to lower your monthly direct debit to a more suitable amount.
Although it depends on your usage, the typical energy bill for those paying direct debit will drop by £426 from July when the price cap is reintroduced.
This price from July will be cut from an equivalent of 50p per kilowatt hour (kWh) to 30p for electricity, and from 13p to 8p for gas - but the standing charge will stay at 53p and 29p.
If you use more energy, then your bills will be higher and, if you use less, then they will be lower.
Notably, this is the first time energy bills have dropped in two years, after a reduction in the price of wholesale gas, but wholesale prices are still a concern even as the market stabilises.
Despite energy bills looking set to fall, what we pay for gas and electricity is still hideously high compared with 18 months ago.
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