The energy price cap will come down on 1 April 2024, with 10 million households urged to submit meter readings this weekend to ensure they benefit from the lower price.
Households on standard variable tariffs (SVTs) will pay £1,690 on average annual gas and electricity bills from Monday 1 April 2024 under regulator Ofgem’s energy price cap.
This is down more than £200 from the current quarter’s energy price cap of £1,928, which has applied since January 2024.
While this is welcome news to billpayers who have battled with soaring gas and electricity costs over the last two years, it’s wise to submit a meter reading ahead of the cut to benefit from the lower rates.
According to comparison site Uswitch, paying for a week’s energy at the higher March rates instead of April’s figures could cost the average home £4.65.
And with 10 million households on their supplier’s SVT, it means delaying by a week, which means UK billpayers could overpay to the tune of £44.6m.
As such, it is urging these households to read meters this Easter bank holiday, adding that the average billpayer will spend £127 on energy in April due to lower usage and rates, compared with £205 in March.
Meter reading mix-up
However, Uswitch research revealed nearly a fifth (18%) of those without smart meters haven’t submitted their readings in the last three months and 4% haven’t for a whole year.
Not submitting meter readings means suppliers have to base bills off estimated usage — meaning some households could be overpaying, while others may not be paying enough.
For some (14%) who haven’t updated their usage, it’s because they don’t know how to read their meter, while 12% said they don’t even know where to find theirs.
Meanwhile, a fifth of households admitted to making a mistake when submitting their meter readings. The most common mistakes include mixing up gas and electricity meters, and writing digits in the wrong order.
Ben Gallizzi, energy expert at Uswitch.com, said: “We urge any households without a smart meter to submit their meter readings this bank holiday weekend, so their supplier has an updated – and accurate – view of your account on or around 1 April.
“All households without a smart meter should ideally submit a meter reading every month to improve the accuracy of their bills.”
Energy bills: Help and paying the right amount
You should check your monthly direct debit payments reflect your actual use and inform your provider if not. This ensures you’re not paying too much or too little.
If you think you have too much credit in your account as we head into spring and summer, you may want to ask your supplier to return some of the excess.
You should also check what energy support schemes or grants you, or any vulnerable friends or relatives, may qualify for. This includes the Warm Home Discount scheme, where those eligible can receive £150 to help with bills during the winter, while councils also offer help through the Household Support Fund.
Suppliers also have their own customer support funds, with some offering home insulation and energy-efficient white goods.
