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Households urged to send energy meter readings as price cap drop takes effect

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The average household energy bill has fallen by 7 as of Monday after Ofgem lowered its price cap in response to wholesale prices.

Some 10 million households have been urged to send energy meter readings to their supplier as cheaper prices come into effect.

The regulator has dropped the cap from the previous £1,690 for a typical dual fuel household in England, Scotland and Wales to £1,568, a fall of £122 over the course of a year.However, those households on a standard variable tariff – as opposed to a fixed deal – and who do not have a smart meter should submit their electricity and gas readings to their supplier as close as possible to July 1 to ensure they are billed accurately at the lower prices.

Suppliers who have not received meter readings base their bills on estimated usage, meaning households could be overpaying, while others may not be paying enough. The latest fall offers further relief to households given the previous quarter-on-quarter drop seen in April, but analysts have said they expect Ofgem to increase the price cap in October, before dropping it again in January 2025.

 

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