Energy Costs Expected to Decrease as Ofgem Lowers Price Cap
As the price cap on energy tariffs set by Ofgem, the energy regulator, is set to decrease, households across England, Scotland, and Wales are being advised to submit meter readings to their energy suppliers. By doing so, consumers can ensure that their bills are based on actual usage rather than potentially higher estimated amounts.
The revised price cap, which comes into effect on Saturday, will result in a modest reduction in energy costs for approximately 27 million homes. Ofgem has lowered the cap on a typical annual dual-fuel tariff from £2,500 to £2,074, in alignment with the government's energy price guarantee.
Consumer champion Martin Lewis is among those encouraging people to take meter readings this weekend. He emphasizes that by taking this simple step, consumers can prevent their energy suppliers from estimating their usage and potentially charging them higher bills. Lewis explains that the price drop of around 17% on July 1st will have varying effects on consumers, with high users of gas benefiting more than low users.
Lewis advises those who are on a monthly direct debit and do not have a smart meter to take a meter reading. Failure to do so may result in estimated bills, which could include usage from the higher rate before the price cap change. This discrepancy could negatively impact consumers' bills. To ensure accuracy,
Taking a photo of the meter reading as a backup in case consumers are unable to submit it to their energy provider on the same day is recommended.
The decrease in the price cap is a welcome relief for households that have experienced soaring living costs over the past year.
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