'Before July 1' energy bills warning as millions could end up overpaying

Nearly 11 million householders could risk forking out too much on their energy bills if they delay submitting a meter reading before Monday, July 1. To fully benefit from the new cheaper price cap which comes into effect on July 1, households on standard variable tariffs (SVTs) who don't have a smart meter should record and submit their meter readings before Monday.

The average household on an SVT with typical usage is expected to spend £83 on energy in July, compared with £127 in June. The reduction is down to a combination of cheaper rates and lower usage at the height of summer.

However, those on SVTs without a smart meter who fail to submit meter readings on or around 1 July risk having some of their usage estimated and possibly charged under the older, more expensive June rates.

The difference between a week's worth of energy at June's rates compared to July's is £2.78 for the average household. Therefore, if those 11 million households didn't submit a reading by 1 July and their usage was estimated, just a week's worth of energy at the more expensive rates could see them overpaying by £30 million in total, according to research by Uswitch.com.

Industry analysts suggest energy rates will rise again in October. Rates could stay that way throughout the winter into 2025. A variety of fixed tariffs are currently on offer which could provide year-long financial stability, some even standing at 10% below the anticipated October price cap.

Leading comparison site Uswitch.com is encouraging households to submit a meter reading this week and compare energy tariffs, possibly finding a more economical deal before the expected price hikes in October. Ben Gallizzi, energy expert at Uswitch.com, said: "Households should be adding 'read my energy meter' to their to-do-list this weekend if they want to take full advantage of lower energy prices from July.

"Customers who don't have a smart meter should aim to submit their readings before or on Monday 1 July, so their supplier has an updated and accurate view of their account. This is when the next energy price cap comes into effect, so if you delay submitting your readings, your energy usage could end up being estimated and therefore charged under the higher June rates. Try making this task a monthly habit for billing accuracy.

"Households are also advised to see whether now is the time to change their energy tariff, to beat the predicted October price hikes. There are a number of fixed tariffs worth considering right now. By opting for a fixed deal, you're locking in those rates for the duration usually 12 months which means households could have price certainty and avoid the ups and downs of the price cap.

"The easiest way to assess your options is to run a comparison at Uswitch.com, where you'll be able to see available tariffs with personalised costs based on your household consumption."