Households are being urged to send in their meter readings before the price cap change date
29.06.2023 - 10:33
/ manchestereveningnews.co.uk
Householders can save cash by sending meter readings to their energy provider ahead of the reduced price cap, set to come into force on July 1. It follows Ofgem's decision to drop the price cap in response to plummeting wholesale prices, resulting in an average annual decrease of £426 in household energy bills from July.
The energy regulator has declared that it will slash the price cap from £3,280 to £2,074, commencing July 1. This marks the first occasion since the global gas crisis gripped the market over 18 months ago that consumers on default tariffs will witness a decline in their prices.
The government's Energy Price Guarantee (EPG) has partially shielded households from recent price hikes by limiting the average annual energy costs to £2,500. This EPG subsidy has effectively supported Ofgem's price cap. Consequently, Ofgem's latest reduction will once again govern household bills, resulting in a drop from £2,500 to £2,074, equating to approximately a 17% decrease.
To ensure that they benefit from the reduced prices as soon as they take effect, consumers are advised to submit their meter readings before midnight on June 30. By providing accurate readings, households can prevent their supplier from estimating their energy usage and potentially applying the old, higher prices to post-June 30 consumption.
In the event that you are unable to submit their readings by June 30, they are encouraged to do so as close to the date as possible, while retaining a date-stamped photograph as proof.
Gareth Kloet, energy spokesperson at the Go Compare deal comparison site, said: "This drop will come as a very welcome relief for many households who have been struggling to pay their energy bills in the past year. If you compare