Millions of households urged to take action within 24 hours to avoid costly energy bills

Millions of people are being urged to take action within 24 hours to avoid paying more on their energy bills over the past few months.

Almost 10 million households have been warned they risk overpaying if they do not send meter readings to their supplier before the 10 per cent Ofgem price cap rise from October 1.

From Tuesday the average household energy bill is to increase by £149 a year as we approach the winter months.

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The cap is riring from the current £1,568 for a typical dual fuel household in England, Scotland and Wales to £1,717 - around £12 a month more.

Homes on a standard variable tariff (SVT) and don't have a smart meter are being urged to submit latest electricity and gas readings to their supplier as close as possible to October 1 to make sure any energy they use before this date is not billed at the higher prices.

If suppliers do not receive meter readings before this date they may base bills on estimated usage, meaning households could be overpaying - or underpaying - for energy.

Comparison site Uswitch.com calculated that the average household on an SVT is expected to spend £135 on energy in October compared with £55 in September due to a combination of higher rates and increased usage at the start of autumn.

Uswitch energy spokesman Ben Gallizzi said: “With energy prices rising next week, it’s vital that households submit a meter reading, with a £19 difference between the cost of a week’s energy at September’s prices compared with October.

“Customers who don’t have a smart meter should aim to submit their readings before or on Tuesday, October 1, so their supplier has an updated – and accurate – view of their account.

“If you delay submitting your readings, some of your September energy usage could end up being estimated and therefore charged under the higher October rates. Try making this task a monthly habit for billing accuracy.

“Households are also advised to see whether now is the time to change their energy tariff, to beat the October price hikes.

“There are a number of fixed tariffs worth considering right now. By opting for a fixed deal, you’re locking in those rates for the duration – usually 12 months – which means households could have price certainty and avoid the ups and downs of the price cap.”

The price cap does not limit total bills because householders still pay for the amount of energy they consume, but sets a maximum price that energy suppliers can charge consumers for each kilowatt hour (kWh) of energy they use.