Some 10 million households are being urged to ship power meter readings to their provider this weekend to make sure they don’t overpay when cheaper costs come into impact on July 1.
The common family power invoice will fall by 7% from subsequent month after Ofgem lowered its worth cap in response to wholesale costs.
The regulator is dropping the cap from the present £1,690 for a typical dual-fuel family in England, Scotland and Wales to £1,568, a drop of £122 over the course of a yr.
That is round £500 lower than the cap in July final yr, when it was £2,074.
However these households on a normal variable tariff – versus a hard and fast deal – and who don’t have a wise meter ought to submit their electrical energy and gasoline readings to their provider as shut as attainable to July 1 to make sure they’re billed precisely on the decrease costs.
Those that don’t submit readings danger having a few of their utilization after that date charged on the earlier, costlier charges.
Suppliers who haven’t obtained meter readings base their payments on estimated utilization, that means households might be overpaying, whereas others might not be paying sufficient.
The common family is predicted to spend £83 on power in July, in contrast with £127 in June, as a result of decrease cap and decrease utilization as a consequence of hotter climate, comparability website Uswitch calculated.
The most recent fall provides additional reduction to households given the earlier quarter-on-quarter drop seen in April, however analysts have stated they anticipate Ofgem to extend the worth cap in October, earlier than dropping it once more in January 2025.
Ben Gallizzi, power spokesman at Uswitch, stated: “Households must be including ‘learn my power meter’ to their to-do checklist this weekend in the event that they need to take full benefit of decrease power costs from July.
“Prospects who don’t have a wise meter ought to goal to submit their readings earlier than or on Monday July 1, so their provider has an up to date – and correct – view of their account.”
Uswitch additionally urged households to analyze different tariffs, together with fastened offers, to beat the expected October worth hikes.
Mr Gallizzi stated: “There are a selection of fastened tariffs price contemplating proper now. By choosing a hard and fast deal, you’re locking in these charges for the period – often 12 months – which suggests households might have worth certainty and keep away from the ups and downs of the worth cap.”
In the meantime, a coalition of shopper teams and power corporations have urged Ofgem to not permit corporations to close out their present clients from their least expensive offers.
Ofgem has stated it’s minded to take away the ban on acquisition-only tariffs, which have been utilized by corporations to draw new clients or lure switchers from rival corporations, from October 1.
Which? stated it was involved that households who needed to stick with their present provider might be left worse off by being hit with so-called “loyalty penalties”.
The watchdog has written to the regulator alongside E.ON, Octopus, So Power, Insurgent Power, Finish Gasoline Poverty Coalition, Residents Recommendation and Truthful By Design, calling for it to rethink its proposals to carry the ban.
Rocio Concha, Which? director of coverage and advocacy, stated: “Our analysis has proven that customers overwhelmingly consider cheaper power offers solely accessible to new clients are unfair – even once they would possibly stand to learn.
“That’s why Which? and a coalition of power corporations and shopper organisations have written to Ofgem warning them to not carry the ban on acquisition-only pricing.
“Permitting offers completely for brand spanking new power clients might open the door to loyalty penalties and would come on the expense of those that want to keep on with their present provider on their greatest deal.”
An Ofgem spokesman stated: “We’re grateful to the buyer teams and stakeholders for his or her response to our statutory session.
“We recognize the energy of feeling on this concern and can fastidiously think about all views within the coming weeks to tell our last determination.”