Energy price cap warning: Millions urged to take meter reading or risk being overcharged | Personal Finance | Finance

Millions of households are urged to submit their meter readings before the new energy price cap takes effect on October 1.

Failure to do so could result in households being overcharged for their energy.

To ensure accuracy, it is encouraged that households take the meter reading as close to October 1 as possible.

The ideal date to do so is the last day before the new price cap comes in, on September 30 – this way, the energy supplier knows exactly how much to charge each household.

If a recent meter reading isn’t taken, energy providers will be left to estimate one’s usage which could lead to customers paying more than they should.

Meter readings are significant as they are the basis for accurate billing.

Starting from October 1, a new energy price cap will be enforced, affecting individuals using standard variable tariffs.

The energy price cap is set to decrease by seven percent from £2,074 to £1,923.

This price cap isn’t a cap on the overall amount people actually have to pay for their gas and electricity – it instead caps how much they pay per kilowatt hour (or unit) of energy.

Ofgem has announced that the actual amount someone pays will depend on their actual household usage and where they live, as well as the meter and payment type.

With just a week until the new price cap takes effect, households have been advised to ensure they send an up-to-date meter reading to their energy supplier.

From October 1, the new energy rates are as follows:

· Gas unit rate – 6.89p per kWh with a standing charge of 29.62p per day

· Electricity unit rate – 27.35p per kWh with a standing charge of 53.37p per day

There are about 29 million households in Britain on standard variable tariffs and therefore are subject to the price cap coming in place on Sunday.

Last month, energy experts at Cornwall Insight predicted that the price cap drop could end up saving the average household more than £200 a year on their bills. 

However, it’s worth noting that a new price cap is announced every three months, so it could all change again come January.