Experts have been calling for householders to read their energy meters. Why? Well, on Friday, April 1, the energy cap rises and, according to some experts, you could risk paying more than you need to for energy already used.
Consumer champion, Martin Lewis is among those urging UK households to take action, and if you haven't done it already, Thursday, March 31 is the last day to get those figures recorded. Ofgem's increase in its price cap will mean that for those on a default tariff who pay by direct debit, the price cap is going up by almost £700. This will be a huge hit on household bills.
Offering the advice on his ITV Martin Lewis Money Show Live series finale earlier this month, the financial guru, said customers should inform their providers so they don't estimate usage dates and start charging on the higher rate for energy used before the rise. The energy price cap for those on default tariffs who pay by direct debit is rising by £693 from £1,277 to £1,971 from April 1. Prepayment customers will see a bigger jump, with their price cap going up by £708, from £1,309 to £2,017.
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The energy price cap isn’t an absolute cap on bills, as its name suggests - instead, it sets a limit on the rates a supplier can charge for each unit of gas and electricity you use. It is important to send regular meter readings, otherwise your energy supplier will estimate your usage and you could end up being overcharged.
But Martin has explained that if you take a meter reading today, Thursday, March 31, you can tell your energy provider exactly how much gas and electricity you used before the price cap increase. He said: "That way you draw a line in the sand that says to your energy firm, I've only used this amount at the cheaper rate."
More expert advice
Experts at GoCompare Energy have also explained why this meter reading warning should not be ignored. Daily Record reported that Gareth Kloet, GoCompare’s energy spokesperson said: "Until April 1st this year, energy costs per unit will still be in line with the previous price cap of £1,277 - so when this increases on April 1st some people will be paying more than half again for the cost of their energy.
“So, it’s absolutely worth taking a meter reading before these increases come into effect. By doing this, it simply means your energy company cannot charge you at the higher rate for any units that have been used prior to April 1st.” He continued: “The cost-of-living crisis is hitting everyone, so if there’s a way to shave money off your bills this April, we would urge all bill payers to take both gas and electricity meter readings on March 31st and make sure you submit these to your supplier.
“Traditionally, if energy prices are on the increase, we would tell people to switch and save on their energy but at the moment, there aren’t any competitive deals available for people to compare. We hope to be able to offer this service again soon but in the meantime, this is one way people can still try to save on their energy costs.”
The energy price cap is determined by Ofgem and is reviewed by the regulator every six months. It was introduced in 2019 to ensure that households will always pay a fair price for their gas and electricity bills.
How to read your meter and send your reading
A digital meter will show five numbers in black or white, and might be followed by one or more red numbers. To send a meter reading, you'll need to send the first five numbers shown from left to right (you can ignore any red numbers) to your energy supplier. You should be able to do this over the phone, online or through an app.
