December 28th 2024.
Attention all homeowners! It's time to take action and ensure you're not overpaying for your energy bills. If you have yet to switch to a smart meter, it's imperative that you submit your energy reading before January 1st. Failure to do so could result in an inflated bill.
The energy price cap, set by Ofgem, will see an increase from £1,717 to £1,738 per year for the average household using both electricity and gas. This change will take effect on January 1st, 2025. For those without a smart meter, this means your bill will be based on an estimated usage, which could lead to paying January prices for your December energy consumption. That's an average increase of £6.67 per week, adding up to a whopping total of £66 million across Britain.
To avoid this, Elsie Melville, energy expert at Uswitch, advises homeowners to submit their readings before or on Wednesday, January 1st. This will ensure your supplier has an accurate view of your account. Waiting any longer could result in estimated usage and ultimately, a higher bill. It's also the perfect time to consider switching to a new energy tariff, as there are currently fixed deals available that are cheaper than the January price cap.
But what exactly is the energy price cap? This is a maximum price set by Ofgem that energy companies can charge for each unit of energy used. This applies to all of the UK, except for Northern Ireland which has its own energy market. Ofgem reviews this cap every three months for a typical dual-fuel household.
If you're currently on a standard variable tariff and do not have a smart meter, EOn advises submitting your reading before January 5th to avoid being billed based on an estimate. According to industry analyst Cornwall Insight, the price cap is expected to rise by 1% in April to £1,762. This follows a 1% increase in January last year and a staggering 10% increase in October.
To avoid these rising costs, Ofgem suggests checking if you can get a better deal with an alternative energy provider and potentially switching to a fixed rate deal. This can help lock in a cheaper rate and provide price certainty, sparing you from the ups and downs of the price cap.
It's important to take action now to avoid overpaying for your energy bills. Don't let the energy price cap dictate your expenses - submit your readings and consider switching to a fixed rate deal for a better deal. Stay informed and take control of your energy costs.
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