You may know that energy prices fell for most households on 1 October 2023 thanks to the energy price cap – with the average annual bill for a typical household falling to £1,834 from last Sunday.
But annual gas and electricity bills still remain sky-high in comparison to previous years, with experts predicting that January 2024 will see bills rising once again. Eeesh.
So in the interest of saving as much money as humanly possible right now, it’s worth knowing that the energy price cap coincides with ‘meter reading day’, which is when energy companies collect readings from their customers (on variable tariffs) in order to inform their rates.
The best way you can make sure you’re paying a fair rate is by sending your own meter readings to your supplier, stopping it from estimating your usage and potentially suggesting a higher rate. Here’s what you need to know…
What is the energy price cap?
The energy price cap is the set limit for what households can pay for gas and electricity within their homes. It was introduced by energy industry regulator Ofgem in 2019, in order to prevent the millions of households on variable energy tariffs from being overcharged.
It changes every three months, in January, April, July and October.
However, the cap dictates the maximum a supplier can charge for each unit of energy as well as the maximum daily standing charge – so the rates given are an average based on what a ‘typical’ household would pay if the new rate were applied for a year. Your actual energy bill will be based on your own consumption, or an estimate calculated by your supplier.
Why should I send my meter readings now?
If you are on a variable tariff (like the majority of UK households), it’s wise to give a meter reading to your supplier around this time in order to make sure there are no discrepancies in the amount you’re charged. It will stop your supplier from estimating your usage and potentially charging more than necessary.
If you have a smart metre that’s regularly sending readings to your supplier, you don’t have to do this – though it’s worth checking on your bill that your smart readings have been taken into account.
Of course, it’s worth noting that you can’t guarantee that you’ve used less energy than the estimated value when you send your reading – there will be some who may end up paying more this way, but it will be the fair price based on your actual energy consumption.
When do I need to send my meter reading by?
While the latest energy price cap came in on 1 October, you do have a little time to make sure you take down your meter reading, since most companies allow you to submit it afterwards.
Depending on your provider, there are different rules – you can contact them to find out, or alternatively Money Saving Expert has a handy table detailing the different suppliers and how you can submit your readings to them.
How do I submit a metre reading?
If you’re unsure on how to read your meter, head to Citizens Advice – where you can read up on the different types of meter and how to get a reading.
Then, you just need to contact your supplier to submit it. Many can be inputted online or even via WhatsApp, automated phone calls or texts – but for some providers, you may only be able to do it over the phone.
Is there anyone who doesn’t need to send a meter reading?
If you’re on a fixed rate tariff, there’s no need to send a reading as your bill will already be fixed. You also don’t need to send any readings if you have a smart meter that’s sending regular readings (as aforementioned), or if you have a Pay As You Go meter (i.e. you already pay for what you use).