Ahead of the new energy price cap, today has been branded 'Meter reading day' as Martin Lewis says it will draw a "line in the sand".
By submitting your meter reading today, your energy usage up till now should only be charged at the current rate - rather than when prices soar on Friday.
Millions of homes around the country are preparing themselves for higher gas and electricity bills from April 1 as Ofgem raised the price cap by 54 per cent.
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This will add an extra £693 to the average yearly household Direct Debit bill and £708 a year for those on prepayment meters.
Financial guru Martin Lewis has been a saving grace to many during the lead up of this price hike, with many calling for him to be the next Chancellor of the Exchequer.
He has been explaining what people can do to prepare and shared the best ways to save money while pleading with the UK Government for more financial support.
As the Mirror reports, Martin has been urging people on Direct Debit to do three things before Friday April 1 - not to cancel your monthly Direct Debits as this will add a further six per cent on to your bill, stick to your current fix (if it’s the best option available) and take meter readings today.
And on his ‘Ask Martin’ BBC Radio 5 Live Podcast, the money saving expert explained the best time to take your meter reading on Thursday, March 31 - even if you’re on a smart meter, which will capture the data for you.
When asked by a listener about taking a meter reading before Friday, Martin said: “The price rise is on the 1st of April, so if you don’t have a smart meter and you don’t do a meter reading, then what the [energy] firm will do is estimate what proportion of your usage was before April 1 and what proportion of your usage was after the 1st of April and that will be an estimation and that’s how it’s billed.
“What I’m suggesting everybody does - everybody - is you take a meter reading, preferably Thursday evening.”
Why are Direct Debit energy bill going up by more than 54 per cent?
Martin also explained three reasons why some energy bill Direct Debits are going up by more than Ofgem's 54 per cent price cap from April 1.
These are:
- You were previously on a fixed tariff which has now ended and you’re now on the price cap which could mean someone with typical, average usage who was paying around £900 will now see it more than double to £1,917.
- You’ve chosen to fix, so you’ve moved to a fix which is more expensive than the price cap in which case you would expect to see an increase of more than 54 per cent.
- Some energy firms may be inflating estimated Direct Debit bills to help with their cashflow. This could also be higher if you have debt on your account. However, Martin said that if you are in credit, and it’s going up by more than your rate is going up, then it could be an issue and you should take a meter reading before contacting your supplier to challenge it.
On Good Morning Britain yesterday (Wednesday March 30), he pointed out that some energy companies are doubling direct debits and raising bills by 100 per cent. He stressed that you can call the company and challenge it, ask why they are doing it and say you're happy to pay the 54 per cent extra, but not 100.
You can find out more information about why your Direct Debit is higher than you expected on the MoneySavingExpert.com website here.
