BILL HELP
Four vital energy checks to make this weekend ahead of big change to bills
Plus watch our video on what the price cap means for you
ENERGY bills will drop in days meaning households across Britain will be hundreds of pounds better off.
Millions of households will pay £122 a year less, on average, as part of the latest energy price cap change.
1
The energy price cap limits the amount energy suppliers can charge for gas and electric.
It is based on wholesale prices and changes every three months.
The cap will fall from the current rate of £1,690 a year to £1,568 - the lowest level in two years.
The energy regulator Ofgem confirmed the new price cap last month, and it comes into effect on Monday, July 1.
READ MORE ON MONEY
That said you could end up spending more depending on your usage.
The cap is a limit that applies to the unit price of gas an electric, but is shown as a figure representing the average energy use of a typical dual fuel household.
Also bear in mind that the energy price cap changes every three months so there is a possibility your monthly bill could rise again this year.
The most common way to pay your electricity bill is by setting up a direct debit with your supplier and this is also said to be the cheapest.
Most read in Money
Here are four checks you must make this weekend to ensure you get the most out of your money.
1. Take a meter reading
It is vital that you take an energy reading before June 30 to ensure you are getting the best deal.
An updated reading means your supplier has the most accurate idea of your usage and can charge you accurately.
I used quick Martin Lewis tip to claim back £600 - the money was in my account within four days
Customers who don't send their suppliers regular readings will have their bills calculated by estimated usage, and they will likely pay more - so it is always worth knowing how to send the numbers.
Once you've taken a reading, you should be able to submit it in a number of ways, including text message or online.
You might also be able to submit it online or through your supplier's app.
It's best to check with your supplier to see your options.
It's always worth taking a picture of your meter reading when you submit it to your supplier - just in case you need it as evidence in a future dispute.
The way you take a meter reading depends on the type of meter you have - we've explained how to take a reading depending on your meter type.
If you have a smart meter, you don’t need to take a reading, as this is sent to your supplier automatically.
But it is worth making sure that your meter is sending readings correctly, as sometimes smart meters can have issues.
When is the deadline to submit a reading?
THE deadline you have to submit a reading varies from supplier to supplier.
Some companies will allow you to backdate the reading if you miss the exact date it was meant to be submitted.
But that may not always be the case so it is worth speaking to the customer service team at your energy supplier to double check.
The UK's biggest energy suppliers have shared with Sun readers what date they can backdate up to.
British Gas: : If customers take a read on 1st July, but don’t get a chance to provide it on the day, a form on the BG meter read page will be available until July 14 which will allow them to submit the read they took on 1st July.
The company's meter read page is available for all customers to provide meter reads and customers can take and submit meter readings anytime, including on 1st July. You’ll see the options our customers have on that page.
Octopus Energy: Non-smart meter customers just need to take a picture of their meter on the day the rate changes, they then have another week to submit it to us.
This can be done online or over email (to h[email protected]).
For our customers on our variable rate tariff, Flexible Octopus, price changes will come into effect at 00:01 July 1.
If non-smart meter customers are keen to give a meter reading to coincide with the change, the best day to collect it is on the July 1. They then have a week to then submit the reading.
Smart meter customers do not need to take a photo or submit a meter reading, as this is done automatically.
EDF: EDF customers will be able to back date their meter reads at any time up to and including Tuesday, July 9.
Customers will be able to leave meter reads via the EDF App, or online via their MyAccount.
Readings can also be submitted via telephone, email or by text and WhatsApp.
Scottish Power: Customers can give a meter reading in their online account, via the app, or over the phone (24hrs a day).
Readings can be submitted between July 1-5 and will be back dated to Jun 30.
2. Switch to a direct debit
Many households will still end up paying around £100 more each year than those who pay with a direct debit or a prepayment metre.
For many households the cheapest way to pay is via a direct debit.
Sometimes this is because energy suppliers offer a small discount if you choose to pay using this method.
From July 1, a typical household that pays their energy bill by direct debit will pay the following rates:
- 22.36 pence per kWh (for electricity)
- 5.48 pence per kWh (for gas)
A typical household using a direct debit payment method will be charged £1,568 over a year for typical use.
Meanwhile, a household who pays on receipt of their bills will pay £1,668 over the same period.
- 23.54 pence per kWh (for electricity)
- 5.77 pence per kWh (for gas)
If you are keen to switch to a direct debit you should get in contact with your supplier and see if they can offer you a better deal than what you are currently paying.
It is important to speak to your supplier before you make the switch.
However, changing suppliers should not take longer than five days if you do decide to switch.
This is because most of the UK’s energy suppliers are signed up to the Energy Switch Guarantee.
This guarantees that the supplier you’re switching to will complete the process and that it will be done within five days.
There’s also a two-week ‘cooling-off’ period, during which you can cancel the switch free of charge.
3. Check and challenge
If you pay your energy bill by direct debit, then it is assumed that this monthly amount should be "fair and reasonable".
But if you don’t think that is the case you have the right to dispute it.
First you must talk to your energy supplier and tell them you think you have been overcharged.
To help fight your case, make sure to have all the information you need and send images of your meter.
If you're not happy with the outcome you can take it to the independent Energy Ombudsman to dispute, but there are a few steps before you get to that stage.
Your supplier must clearly explain why it's chosen that amount for your direct debit.
If you've got credit on your account, you have every right to get it back - although some experts recommend keeping it there through the summer, so your bills don't go up in the winter when you use more energy.
Your supplier must refund you or explain exactly why not otherwise and the regulator, Ofgem, can fine suppliers if they don't.
If you are disputing a bill, taking a meter reading is a must.
If it's lower than your estimate, you can ask your provider to lower your monthly direct debit to a more suitable amount.
But beware so you don’t end up in debt later on with a bigger catch-up bill at the end of the year from underpayments racking up.
If you don't have success in negotiating a lower payment then you can put in a complaint to the Energy Ombudsman.
How do I calucate my energy bill
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year - irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type - this will give you your usage costs.
You'll then need to multiply each standing charge by 365 and add this figure to the totals for your usage - this will then give you your annual costs.
Divide this figure by 12, and you'll be able to determine how much you should expect to pay each month from April 1.
4. Get help
Millions of households are entitled to help with their energy bills, so if you are struggling it is important you reach out.
Many government funds that help households with energy bills, such as the Cold Weather Payment, are only available during the winter months when the weather is typically colder.
But that does not mean there are no options available.
Some local councils give out vouchers as part of the Household Support Fund (HSF).
Struggling households can apply for support via the Household Support Fund (HSF).
The scheme, which is funded by the Department for Work and Pensions, was first launched in 2021 but has been extended a number of times.
Funding is given to local councils to distribute, so the amount handed out varies across the country.
But in the past some families have gotten up to £500.
How much you can get also depends on where you live, but the sum should be paid as a direct bank transfer or on receipt of an electricity bill.
Check in with your local council if you would like to see if you are eligible to receive the fund.
READ MORE SUN STORIES
It is not only the government who can offer support.
Energy suppliers also have a range of initiatives to help struggling families.
Get help with your energy bills
THERE'S a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don't think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills. These include:
You Pay We Pay: British Gas has just launched its ‘You Pay: We Pay’ initiative 100% matches energy payments made by customers who are struggling and most in need of help.
British Gas Energy Trust: The British Gas Energy Trust is an independent charity solely funded by British Gas and, as well as directly helping all consumers with grants, it also works with and provides funding to other money and energy advice projects.
Octo Assist’: A fund by Octopus energy for customers who are experiencing financial hardship which stands at £30m. It has helped over 70,000 customers so far and is still open.
Octopus has also already absorbed tens of millions of pounds on behalf of customers by keeping standing charges below the price cap,.
To apply for the assistance you can visit the company website.
Topics