The change will affect around 85% of households (Pictures: Rex/Getty)
Although it may be hot and sunny right now, the British weather means colder climes are never far away.
And to ensure you don’t get a shock once winter rears its ugly head and your heating bill lands on the doorstep, Money Saving Expert is advising people to plan ahead.
In the latest edition of its weekly newsletter, the personal finance site, founded by Martin Lewis, dubbed it ‘meter reading week’ for everyone who pays for energy via monthly direct debit.
As of July 1, a new, lower energy price cap kicks in, which dictates the rates 85% ofUK homes will get.
Unless you’ve got a smart meter, your supplier will estimate daily and weekly usage between readings – and if you leave it too long to submit one after the drop, you could be charged for a larger chunk of the higher rate than you actually used.
As such, MSE recommends taking a meter reading on Monday (give or take a day or two) so your bill is accurate.
Submitting a reading now ensures you aren’t charged more than you should be (Picture: Getty Images/iStockphoto)
For those on a non-smart prepay meter, your best bet is to run down your credit until the price change (or add as little as possible to get by until then) before topping up on or shortly after July 1.
The exact amount you’ll save is dependent on your usage and where you live, as well as the method of payment.
However, according to direct debit averages from throughout England, Wales and Scotland, the electricity unit rate will reduce from 22.5p per kWh to 22.4p per kWh, while for gas the rate goes from 6p per kWh to 5.5p per kWh.
Being prudent now could help you avoid a shock when colder weather hits (Picture: Getty Images)
It may not seem like loads, but it represents a 7% cut to the energy bill of the average household – a welcome saving for most during the cost of living crisis.
Taking into account the typical energy use for a medium-size home (which according to Ofgem means a two or three-bedroom house with two or three residents) that’s £60 off each year on average, or almost £90 less annually for a high energy use home (more than four bedrooms and between four and five residents).
Not too shabby given it happens automatically.
It is worth noting, though, that this cap applies from July to September, and the cap is predicted to rise come October. You may want to consider building up some credit on your account now in order to give yourself a safety net, but MSE also advises looking into a fixed deal.
This option sets the rate you pay for a period of time, with the cheapest standalone fix currently coming in at 7% less than the current cap. If you can get in now, that could allow you to …read more
Source:: Metro
