British Gas, Octopus and EDF prospects issued pressing warning by Martin Lewis
The Money Saving Expert has issued a warning to millions of households ahead of the Ofgem energy price cap rise, with some advice on what to do being issued
Martin Lewis is urging households to take a meter reading before energy prices change on July 1(Image: ITVX)
Money-saving guru Martin Lewis has called on millions of households to snap a photo of their gas and electricity meters before midnight on June 30 to dodge potentially paying steeper energy rates when the Ofgem price cap climbs.
The alert affects customers with suppliers including British Gas, Octopus Energy, EDF, E.ON Next, Scottish Power, Ovo Energy and other companies who are on standard variable tariffs and lack a functioning smart meter that automatically sends readings. From July 1, the Ofgem energy price cap will jump by 13%, with the annual bill for a typical household climbing from £1,641 to £1,862 – a hike of £221.
Martin Lewis has cautioned that customers who neglect to provide an updated meter reading risk their supplier estimating how much energy they consumed before and after the price hike, meaning some electricity or gas used before July 1 could be billed at the steeper rates, reports the Express.
Speaking on his BBC Sounds and Spotify podcast, Mr Lewis said: “When I first did this I suggested meter reading day and I crashed virtually every energy site. You can backdate, go and get a meter reading. For belt and braces, you can take a picture of the meter.”
He clarified that customers no longer need to scramble to submit readings precisely at midnight because many energy suppliers now permit readings to be backdated to June 30 if they are provided within the following few days. Snapping a picture of your gas and electricity meters before the price cap shifts gives you a timestamped record of your consumption and could help settle any rows if estimated readings are used later on.
The guidance is especially crucial for homes without working smart meters, as energy firms might otherwise fall back on estimated readings to work out bills when tariffs change.
The Ofgem energy price cap doesn’t cap the total sum households fork out each year. Rather, it sets the maximum unit rate suppliers can charge for gas and electricity on standard variable tariffs.
This means homes that consume more energy than the typical amount will shell out more than the headline annual figure.
Without a precise meter reading, some energy consumed on June 30 could be charged at the steeper July 1 rates if suppliers guess usage across the billing period.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Household energy prices will rise by 13 per cent due to soaring wholesale costs, a highly unwelcome change, just as bills had been reducing.”
She cautioned that steeper energy costs are likely to squeeze household budgets, leaving families with less cash to splash on shopping, dining out and holidays, while also ramping up pressure on retailers and hospitality firms.
Energy Secretary Ed Miliband acknowledged the impact of the increase. He stated: “The rise in the price cap because of a war we did not choose is deeply unwelcome news for households across the country.
“We know people were under pressure before this crisis, and that’s why easing that burden is our number one priority.”
He further noted that the Government is persisting with its investment in clean, homegrown energy and enhancing the energy efficiency of homes in an attempt to lower bills over the long haul.
For customers on standard variable tariffs, taking a meter reading – or simply snapping a photo of the meter before the end of 30 June – could help ensure they are charged the correct rate for the energy they have already consumed before prices escalate.
