Households Urged to Submit Energy Readings as Prices Set to Rise
With energy prices climbing again, households are encouraged to submit meter readings to avoid higher bills in the coming months
Energy, Households, UK, Ofgem, Prices, Meter Readings
London: Nine million households are being asked to send in their energy meter readings. Prices are on the rise again, with a 3% increase expected in April.
As of Wednesday, energy bills across England, Scotland, and Wales have already gone up by 1.2%. This change comes after Ofgem adjusted its price cap due to rising wholesale prices.
And just as this happens, the weather is getting colder, with warnings of snow on the way. So, it’s not the best timing for these price hikes.
Analysts at Cornwall Insight have updated their forecast, now predicting a nearly 3% increase in the price cap for April, which is a bit worse than their earlier estimate of 1%.
Dr. Craig Lowrey from Cornwall Insight mentioned that this news is disappointing for households hoping for some relief. The energy market is pretty volatile right now, and things could change again before April.
With the uncertainty in global politics, especially with the situation in Ukraine and the Middle East, it looks like this volatility will stick around for a while.
Ofgem is encouraging customers to shop around for better deals. They say households could save up to £140 by switching suppliers.
It’s important to note that the price cap doesn’t limit total bills. You still pay for the energy you actually use.
Currently, the price cap is about 10% lower than last year, but it’s still a significant drop from the peak during the energy crisis caused by Russia’s invasion of Ukraine.
Unfortunately, many pensioners are facing a tough winter since the Government has cut winter fuel payments for those not on pension credit or other benefits. About 10 million pensioners will miss out on payments of up to £300 this year.
For those on standard variable tariffs without smart meters, it’s crucial to submit gas and electricity readings soon. This way, you won’t end up paying more than necessary at the higher rates.
In fact, the difference in energy costs between January and December is about £6.67 for the average household.
Uswitch has calculated that households on standard variable tariffs will see their energy costs jump from £135 in December to £165 in January due to higher rates and increased usage.
Elise Melville from Uswitch said that while submitting a meter reading might not be on everyone’s holiday to-do list, it’s definitely worth it to avoid paying more in the new year.
She recommends that customers without smart meters submit their readings by January 1 to ensure their suppliers have accurate information.
Waiting too long could mean some of your December usage gets estimated and charged at the higher January rates.
Now is also a good time to consider switching to a fixed energy tariff, which could save you money and provide some price stability.
Emily Seymour from Which? suggests that as we head into the coldest months, it’s wise to shop around for energy deals. There are currently tariffs available that are cheaper than the new price-capped rates.
She advises comparing potential monthly payments on fixed deals with what you’d pay on the variable tariff to find the best option.
Looking ahead, several household bills are set to increase in April. Water bills in England and Wales will rise by an average of £86 next year.
Ofwat has approved an average increase of £31 a year, which will add up over the next five years to help fund a major upgrade in the water sector.
On top of that, council tax is also going up, with many local authorities raising rates by the maximum allowed. Some councils, like Birmingham, are even increasing their rates by 10%.
And don’t forget about TV licence fees, which will also rise in line with inflation, going up by £5 to £174.50.