Households are being urged to submit meter readings to their energy firm before 1 October, to avoid overpaying by a collective £186million.
The average home currently pays energy bills of £1,568 a year, with prices limited by the Ofgem price cap.
But this will rise to £1,717 from 1 October, or 10 per cent, for those on variable-rate energy deals regulated by the price cap.
But households should give a meter reading before the new price comes in on 1 October, in order to make sure they are not overcharged.
Do nothing: Homes with smart meters do not need to give meter readings, as their devices should connect to energy companies and give gas and electricity data automatically
This overcharging can happen if meter readings are not sent, because energy used at the old, cheaper rate can be billed at the new, higher rate.
Households could overpay energy bills by a total of £186million by not sending meter readings in time, according to comparison service Uswitch.
Many energy firms will accept meter readings past 1 October, to give households more time to submit and to avoid system crashes that occur when there is a rush of submissions.
But to be safe, it is better to get meter readings submitted as close to 1 October as you feel comfortable doing.
Homes on variable-rate energy deals with a smart meter should need to do nothing, as their meter sends readings to their energy firm automatically.
Uswitch said that the difference between a week’s worth of energy at October’s rates compared with September’s is £18.81 for the average household.
Therefore, 10million households didn’t submit a reading by 1 October and their energy use was estimated, just a week’s worth of energy at the more expensive rates could see them overpaying by £186million.
Households which haven’t recently submitted a reading say it’s because they do not know how to read their meter (14 per cent), or do not know where their meter is (12 per cent).
Ben Gallizzi, energy expert at Uswitch, said: ‘With energy prices rising next week, it’s vital that households submit a meter reading, with a £19 difference between the cost of a week’s energy at September’s prices compared with October.
‘Customers who don’t have a smart meter should aim to submit their readings before or on Tuesday 1 October, so their supplier has an updated – and accurate – view of their account.
‘If you delay submitting your readings, some of your September energy usage could end up being estimated and therefore charged under the higher October rates.’
What is the Ofgem energy price cap?
The price cap is a limit, set by Ofgem, which caps the maximum amount an energy firm can charge for the units of gas and electricity consumers use.
It also limits how much households pay in standing charges – the daily fees paid regardless of how much energy is used.
The price cap was introduced in January 2019 to prevent energy firms overcharging customers on variable-rate tariffs.
Because cheap fixed-rate deals have almost disappeared, almost all homes are now on tariffs regulated by the Ofgem price cap.
How does the price cap affect my energy bills?
This depends on what sort of tariff you have, your meter and how much energy you use.
From 1 October, the average household on a variable-rate tariff paying by direct debit will pay £1,717 a year for gas and electricity due to the price cap.
For those with prepayment meters, average price-capped yearly energy bills willrise by 10 per cent to £1,669 a year.
Meanwhile, those paying when being sent a bill will pay £1,829 a year, an increase of 10 per cent.
But exactly how much you pay will vary depending on your energy use. This is because the price cap only limits the maximum you can be charged for the units of gas or electricity you consume. The more units you use, the more you pay, and vice versa.
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