Energy price cap: I'm a personal finance expert - tips to save on bills as new price cap rises in October 2024

• The Energy price cap has increased by 10%, adding £149 annually to average household bills
• Nearly 10 million households risk overpaying if they don’t submit meter readings promptly
• Households without smart meters on standard variable tariffs may face inaccurate billing
• Bills based on estimated usage could lead to overpaying or underpaying for energy.
• Personal finance expert Amy Knight gives her tip on managing energy costs and reducing bills

Today (1 October), the energy price cap has risen by 10% for the next three months, adding £149 annually to the average household bill.

Almost 10 million households have been told they risk overpaying for their energy if they do not send meter readings to their supplier, as a 10% price rise takes effect.

Households on a standard variable tariff (SVT), as opposed to a fixed deal, and who do not have a smart meter, should submit their electricity and gas readings to their supplier as soon as possible if they have not already done so, to ensure any energy they have used before October 1 is not inaccurately billed at the higher prices.

Suppliers who have not received meter readings base their bills on estimated usage, meaning households could be overpaying, while others may not be paying enough.

But even if you’re unable to submit a meter reading in a timely fashion, there are still things you can do to limit your energy usage as we head into winter, which will save you money in the long run.

Amy Knight, personal finance expert at NerdWallet UK, has offered a few simple tips that you can implement from today to help bring the cost of bills down.

Move to a fixed-rate deal

“When money is tight, paying the same amount for energy each month makes budgeting easier, so it’s worth considering fixed-rate deals.

“On low income, essential bills eat up a much larger portion of your pay, so a ‘no surprises’ fix might be preferable, even though there’s a chance variable rate deals (which are protected by the price cap) could end up cheaper next year.

Get a smart meter

“Small changes to energy habits can add up to significant financial savings, but it’s hard to save energy if you can’t see what you’re using. If you don’t yet have a smart meter, contact your supplier to request an upgrade, at no cost to you.

“Keep your in-home display somewhere obvious, such as next to the kettle, to increase your awareness of which activities contribute the most to your bill.”

Use appliances properly

“Recent research by Utilita found that not using a dishwasher’s ‘eco mode’ adds £24.30 a year to bills, and that 75% of people who use a dishwasher haven’t read the manufacturer's instructions.

“Regularly using rinse aid and clearing the filter helps to ensure your dishwasher works efficiently, contributing to lower bills.”

Keep the heat in

“When you switch on your central heating, keep warmth inside your property by investing a few pounds in DIY draught-proofing strips around your windows.

“Reflective foil behind your radiators helps to send warmth back into the room, reducing the need to keep cranking up the thermostat, thereby lowering your bills.”

Want more tips on saving money and keeping warm as the energy price cap rises? We’ve put together a guide here, that covers everything from electric blankets to hot water bottles.