Important Notice: Take a Meter Reading Before Energy Price Cap Change.

There's an upcoming change to the energy price cap, and it's crucial that you take a meter reading before the deadline next week.

Energy firms estimate the usage of customers who pay by direct debit, so submitting a new meter reading just before the cap changes lowers the risk of their 'estimates' going against you. 

Starting from July 1, the energy regulator Ofgem will implement a new cap of £2,074 per year for gas and electricity bills, replacing the current Energy Price Guarantee set at £2,500.

This adjustment means that households battling the cost of living will find things slightly easier with an annual saving of approx. £426. (This drop is still higher than it was previously though).

To ensure accurate billing that reflects your actual energy usage, it is essential to provide an updated meter reading before midnight on June 30. Taking this step will prevent your supplier from overcharging you or basing your bill on inaccurate estimates. Even though bills will be decreasing, it is still important to take a meter reading to simplify the process.

Furthermore, if you find any discrepancies in your bill and need to dispute it, a meter reading is a must. If your reading is lower than the estimated amount, you can ask your provider to adjust your monthly direct debit to a more suitable amount for you.

Gas and electricity rates will be changing with the new price cap. Here are the current and upcoming rates:

Current Rates:

• Gas: 10.31p per kilowatt hour (p/kWh)
• Electricity: 33.21p per kilowatt hour (p/kWh)
• Gas standing charge: 29.11p per day
• Electricity standing charge: 52.97p per day

New Rates (Starting from July 1):

• Gas: 7.51p per kilowatt hour (p/kWh)
• Electricity: 30.11p per kilowatt hour (p/kWh)
• Gas standing charge: 29.11p per day
• Electricity standing charge: 52.97p per day

To calculate your bill from July 1, you need to find the unit rate and standing charge for both gas and electricity. The unit rate is usually listed on your bill in p/kWh, while the standing charge is a daily fee applied throughout the year. Additionally, make sure to have your annual energy usage from a previous bill on hand.

Once you have these details, you can calculate your gas and electricity costs separately. Multiply your usage in kWh by the corresponding unit rate to obtain your usage costs. Then, multiply each standing charge by 365 and add it to your usage costs to determine your annual costs. Finally, divide this figure by 12 to estimate your monthly payments from July 1.

If you have a prepayment meter, the rates will differ. Here are the current and upcoming rates for prepayment meter customers:

Current Rates:

• Gas: 10.55p per kilowatt hour (p/kWh)
• Electricity: 32.05p per kilowatt hour (p/kWh)
• Gas standing charge: 37.80p per day
• Electricity standing charge: 58.08p per day

New Rates (Starting from July 1):

• Gas: 7.11p per kilowatt hour (p/kWh)
• Electricity: 29.06p per kilowatt hour (p/kWh)
• Gas standing charge: 37.80p per day
• Electricity standing charge: 58.08p per day

Please note that households not paying by direct debit or prepayment meters may incur slightly higher costs, as there are separate caps for this payment method.

It's important to mention that Ofgem now reviews the price cap every three months, which means there may be further changes in October 2023, therefore it is important to understand how to take a meter reading regularly.

If you have questions or would like Litegreens support in how to take an accurate reading email us photograph of your meter to info@litegreenltd.co.uk or direct message us on our Facebook page @LitegreenLTD and we will be happy to help.