Yahoo News British Gas, OVO, EDF, Eon and Octopus customers urged to 'act before July' in new update
Finance expert Martin Lewis has given households an urgent warning, particularly those using suppliers like British Gas, OVO, EDF, Eon and Octopus, to submit their meter readings within the ensuing fortnight. This important notice arrives on the back of Ofgem announcing a new energy price cap.
Writing on his Money Saving Expert platform, Lewis highlighted that his guidance especially targets around 29 million UK families on a standard variable tariff (SVT), who neither have a smart meter nor a pay-as-you-go meter. These households are urged to register a meter reading as soon as possible.
With the new energy price cap from Ofgem scheduled to come into effect on Monday, July 1st, submitting a meter reading before this date is pivotal for families to be charged accurately for the power consumed prior to the cap's adjustment.
Yet, the consumer finance specialist also cautions against a hasty rush to provide readings to suppliers. His Money Saving Expert website advises consideration for system overloads, stating: "If all of us rush to do this on the same day, it can lead to suppliers' websites crashing and phone lines becoming jammed, which can affect vulnerable people."
Households needn't worry about exact timings; meter readings taken a few days post-cap change will result in only minimal inaccuracies in billing. Moreover, some providers offer the leeway of backdating readings, allowing consumers to take the reading promptly but submit it subsequently at their convenience, reports Wales Online.
The price cap is set to change on July 1st, with the new rate for a typical household paying by direct debit being £1,568 per year until September, when the regulator will reassess. This figure represents a £122 reduction from the cap that was in place from April 1st to June 30th.
Households are advised to take a meter reading before the changeover to avoid being charged at the higher rate.
It's worth noting that those on fixed-rate tariffs won't be affected by this change and therefore don't need to submit readings. Similarly, customers with prepayment or smart meters are also exempt from this as their devices automatically provide readings to their energy supplier.
Despite the price cap trending downwards after a period of significant hikes, it remains above pre-pandemic levels, reflecting ongoing challenges within the energy sector. Craig Lowery, a principal consultant at Cornwall Insight, commented: "The path forward for energy pricing remains uncertain, and with stakeholders advocating for reforms coupled with a general election on the horizon energy bills are likely to be an area of continued debate and transformation in the months ahead."
