Martin Lewis is urging households to take a meter reading before energy prices change on July 1. (Image: ITVX)
Money saving expert Martin Lewis has urged millions of households to take a photograph of their gas and electricity meters before midnight on June 30 to avoid potentially paying higher energy rates when the Ofgem price cap rises. The warning applies to customers with suppliers including British Gas, Octopus Energy, EDF, E.ON Next, Scottish Power, Ovo Energy and other firms who are on standard variable tariffs and do not have a working smart meter that automatically submits readings.
From July 1, the Ofgem energy price cap will increase by 13%, with the annual bill for a typical household rising from £1,641 to £1,862 – an increase of £221.
Customers are being advised to photograph their gas and electricity meters before the deadline. (Image: Getty)
Martin Lewis has warned that customers who fail to submit an up-to-date meter reading risk their supplier estimating how much energy they used before and after the price rise, meaning some electricity or gas consumed before July 1 could be charged at the higher rates.
Speaking on his BBC Sounds and Spotify podcast, Mr Lewis said: “When I first did this I suggested meter reading day and I crashed virtually every energy site.
“You can backdate, go and get a meter reading.
“For belt and braces, you can take a picture of the meter.”
He explained that customers no longer need to rush to submit readings exactly at midnight because many energy suppliers now allow readings to be backdated to June 30 if they are submitted within the following few days.
Taking a photo of your gas and electricity meters before the price cap changes provides a timestamped record of your usage and can help resolve any disputes if estimated readings are later used.
The advice is particularly important for households without functioning smart meters, as suppliers may otherwise rely on estimated readings to calculate bills across the change in tariffs.
The Ofgem energy price cap does not limit the total amount households pay each year. Instead, it sets the maximum unit price suppliers can charge for gas and electricity on standard variable tariffs.
This means households that use more energy than the typical amount will pay more than the headline annual figure.
Without an accurate meter reading, some energy used on June 30 could be billed at the higher July 1 rates if suppliers estimate consumption across the billing period.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Household energy prices will rise by 13 per cent due to soaring wholesale costs, a highly unwelcome change, just as bills had been reducing.”
She warned that higher energy costs are likely to squeeze household budgets, leaving families with less money to spend on shopping, eating out and holidays, while also increasing pressure on retailers and hospitality businesses.
Energy Secretary Ed Miliband acknowledged the impact of the increase.
He said: “The rise in the price cap because of a war we did not choose is deeply unwelcome news for households across the country.
“We know people were under pressure before this crisis, and that’s why easing that burden is our number one priority.”
He added that the Government is continuing to invest in clean, homegrown energy and improving the energy efficiency of homes in an effort to reduce bills over the longer term.
For customers on standard variable tariffs, taking a meter reading – or simply photographing the meter before the end of June 30 – could help ensure they are charged the correct rate for the energy they have already used before prices rise.