Ofgem’s reduction of the energy price cap for dual-fuel households prompts an urgent need for meter readings to ensure accurate billing at the lower rates. Consumers advised to act promptly as lower prices are anticipated from July 1.
Energy Price Cap Reduction and the Urgency for Meter Readings
From July 1, the energy price cap set by Ofgem for dual-fuel households in England, Scotland, and Wales will decrease by 7%, reducing the average annual energy bill from £1,690 to £1,568. This change is in response to lower wholesale prices, benefiting approximately 10 million households.
Households on a standard variable tariff, who lack smart meters, are urged to submit their electricity and gas readings by July 1 to ensure accurate billing under the new, lower prices. Failure to provide meter readings may result in being charged at previous, higher rates based on estimated usage.
According to Uswitch, a comparison site, the average household’s energy cost in July is projected to be £83, down from £127 in June. However, analysts predict Ofgem may raise the price cap in October, with a subsequent drop in January 2025.
Consumer groups and energy firms have urged Ofgem to reconsider lifting the ban on acquisition-only tariffs, which could disadvantage loyal customers. Ofgem is reviewing feedback before making a final decision.
