Martin Lewis urges British Gas, EDF, EON and Octopus Energy customers to act now (Image: ITV)
Money Saving Expert founder has urged households to take a meter reading “within a few days” of October 1 to ensure energy bills are “totally fair”.
From October 1, increased by 10 percent in line with . The move will see the average household’s annual bills rise by around £149 a year.
However, some may risk paying “more” than necessary if they do not take a new meter reading, as energy firms will price bills based on an estimate instead.
Mr Lewis said customers can give a reading within a few days on either side of the energy price change, the .
Speaking on his last week, the money guru said: “Now I say it’s Meter Reading Week because it really doesn’t make much difference.
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Some energy customers can end up “paying more” if they don’t submit a reading (Image: Getty)
“If you don’t do a meter reading and you pay by monthly direct debit, your usage is estimated and it’s your energy firm that, using an algorithm, will decide how much was before the price went up and how much was after.
“If it estimates too much after the price went up, you will pay more. I’m not suggesting that they’re trying to diddle by doing that, more you might just fall foul of the algorithm.”
However, he noted: “You might also gain from it. The way to make it totally fair is to give a meter reading within a few days on either side of October 1.”
“Most firms you can do it a day or two before and a couple of days afterwards and backdate the meter reading as long, as it’s an honest one.
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“If you’ve got a working smart meter, working being the operative word, you don’t need to do this because your smart meter is sending in readings anyway.”
The price cap sets a maximum price that energy suppliers can charge consumers for each kilowatt hour (kWh) of energy they use. Energy regulator Ofgem reviews and updates it every three months.
It does not limit total bills because householders still pay for the amount of energy they consume. So if a household’s usage exceeds the average, they’ll pay more than the cap.
From October 1, households on a standard variable tariff who pay for their electricity by direct debit will pay on average 24.5p per unit, with a standing charge of 60.99p per day. For gas, the average will be 6.24p per unit with a standing charge of 31.66p per day.