British Gas, Octopus, EON, OVO, EDF customers told to act before urgent deadline

UK householders are urged to take urgent action before a huge change affecting their energy bills. Customers with suppliers including British Gas, Octopus, EON, OVO and EDF must ensure they aren't overcharged as the new price cap comes into effect.

The average household energy bill will fall by 7 per cent this coming Monday, July 1, as Ofgem lowers its price cap. The regulator is lowering the cap from £1,690 for a typical dual-fuel household in England, Scotland and Wales to a new level of £1,568, a drop of £122 over a year. This is around £500 less than the cap in July last year, when it was £2,074.

Those figures are average amounts for people calculated from the drop in single-rate electricity prices (where you pay the same price for the electricity you use at any time of day) from 24.5p to 22.36p per kilowatt per hour and the fall in gas prices from 6.04p to 5.48p per kilowatt per hour. These new rates will be in place until the next price cap change starts on October 1.

READ MORE:

• UK households can save £70 on energy bills in seconds with quick flick of a switch

• Hot weather sleeping hack could make hay fever worse and add £72 to energy bills

So you will be charged at the old rates until July 1 and should then be switched to the new lower rates. Energy experts say people should check their meters before the end of Sunday, June 30, and submit a final reading at the old rates before the new amounts come into effect.

Otherwise, your supplier will estimate your energy bills and may charge you for more gas and electricity at the old rate if it thinks you've used more. In cases where the provider is unable to connect directly to your meter to get an up-to-date reading, it won't know if you've been on holiday, have reduced your energy usage because of the warmer weather, or have been using much less because of a return to office-based working. Taking a reading before the new cap starts means you will get a clear cut-off point between old and new charges.

The actual rates you are charged will depend on where you live, how you pay your bill, and the type of meter you have. Among the regional figures, single-rate direct debit charges for electricity in the Midlands will drop from 23.84p to 21.69p per kWh and multi-rate (including Economy 7) direct debits for electricity from 22.67p to 20.42p. Direct debit gas charges for the Midlands will fall from 6p to 5.44p.

For people in the Midlands who pay by standard credit (by making a payment when they receive their bill), single-rate charges for electricity will fall from 25.09p to 22.83p and multi-rate charges from 23.86p to 21.49p, while gas will drop from 6.32p to 5.72p. Nationally, the standard credit single-rate charge for electricity is going down from 25.79p to 23.54p while for gas it will reduce from 6.36p to 5.77p.

Customers on a pre-payment meter in the Midlands will see single-rate electricity costs drop from 23.06p to 20.92p and multi-rate from 22.08p to 19.84p, while gas will go down from 5.76p to 5.2p. Nationally, pre-payment charges for single-rate electricity will drop from 23.72p to 21.59p, and gas costs from 5.82p to 5.26p.

Analysts have said they expect Ofgem to increase the price cap in October, before dropping it again in January 2025. Get breaking news on BirminghamLive WhatsApp. Join our dedicated community to get the latest updates. You can find out more in our Money Saving Newsletter which is sent out daily with all the updates you need to know on finances, bills, benefits and shopping discounts.