December 31st 2024.
Attention all homeowners: brace yourselves for another increase in energy prices taking effect on January 1, 2025. That's right, gas and electricity rates will be rising by around 1%, following a hefty 10% average increase just a few months ago. But don't worry, Martin Lewis, the financial guru, has some urgent advice to help you avoid getting stung by these hikes.
In his latest newsletter, Martin discussed the Energy Price Cap and the steps you can take to ensure you're not overcharged by your energy supplier. For those of you with a working smart meter, there's no need to do anything as it will accurately give readings to your supplier. However, for the estimated 48 million households in the UK without a smart meter, there is an important step you need to take.
Martin advises giving an up-to-date meter reading to your energy company in the coming days to reduce the risk of being charged for more energy than you've actually used at the new, higher rate. But here's the catch – you need to be strategic about when you submit your reading. If everyone rushes to do so at the same time, it could cause issues such as website crashes and jammed phone lines. So, it's best to submit your reading a few days before or after the price cap rise. Some companies even allow you to backdate your reading, so you can submit it after the increase has taken effect.
According to Martin, submitting your reading within this time frame should result in only minor discrepancies with your energy charges. But how can you lower your energy bills in the first place? With the high cost of living, every penny counts. Amy Knight, a personal finance expert, suggests focusing on getting more value from the money you spend on heating your home.
One tip is to carefully consider switching energy providers, as discounted rates for new customers can lead to savings. Just be aware of when the introductory period ends to avoid a surprise when your bill jumps up again. If you're already on a fixed deal, it may be worth switching to a cheaper variable tariff or a cheaper fixed deal. Just be sure to check for any penalty fees before making the switch.
Another way to save money is to ask for a refund if you're overpaying on your direct debit. It's normal to be in credit at this time of year, so it's worth adjusting your direct debit to a lower amount. And don't forget to turn down the flow temperature of your boiler to save on water heating costs.
It's also important to remember where warm air comes from. Keep your radiators uncovered and leave curtains open to allow the warm air to circulate into the room. And when shopping for new appliances, look for energy-efficient ratings such as A or B.
When it comes to submitting a meter reading, most energy companies allow you to do so online, through their app, or over the phone. Some even offer the option to send readings through text message or WhatsApp. Just be sure to take a photo of your meter for proof of the date and time you took the reading.
For those with British Gas, EDF Energy, E.on Next, Octopus Energy, Ovo Energy, Scottish Power, So Energy, or Utility Warehouse, the deadline to backdate your readings ranges from January 5-14, depending on the supplier. However, it's best to submit your reading before the new cap takes effect on January 1. So, don't wait any longer, take action now to avoid higher energy bills in the new year.
Do you have any energy-saving tips or stories to share? We'd love to hear from you. Get in touch by emailing us at [insert email]. Let's help each other save money and stay warm this winter.
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