Key facts
- Millions of Britons without smart meters are urged to submit energy readings before Wednesday.
- The energy price cap will increase by 13% on Wednesday.
- Electricity rates will rise to 26.11p/kWh and gas to 7.33p/kWh.
- The average annual bill is expected to increase by £221 to £1,862.
- Fixed energy deals cheaper than the new price cap are currently available.
Millions of Britons are being urged to submit their energy meter readings before Wednesday to avoid being charged higher rates under the new price cap. Approximately 5.3 million households on standard tariffs without smart meters risk having their June energy usage calculated at the increased unit rates.
The energy price cap, set by regulator Ofgem, is increasing by 13% on Wednesday. Electricity charges will rise from 24.67p per kilowatt hour to 26.11p, and gas charges will increase from 5.74p per kWh to 7.33p. This change is expected to add £221 to the average annual energy bill, bringing it to £1,862.
Ben Gallizzi, an energy expert at Uswitch, advised customers without smart meters to submit their readings by Wednesday to ensure their accounts accurately reflect their usage. He also recommended that people on standard tariffs explore cheaper fixed-rate deals, noting that 27 such deals are currently available below the new price cap. The best available deal at the time of writing was from Outfox Energy at £1,577 annually for the average household.
While the increase is significant, it coincides with warmer months when heating usage is lower. Furthermore, a predicted further rise in October appears less certain following an interim peace agreement between the US and Iran, which has led to a decrease in wholesale gas prices.