Five things to know ahead of new price cap

Energy UK has highlighted five things for customers to be aware of in advance of the new price cap coming into force on Saturday (October 1st).

Although the Government’s Energy Price Guarantee (EPG), announced last month, will cap bills at a much lower level than had initially been indicated – in addition to the assistance put in place through the Energy Bills Support Scheme (EBSS) announced in May – customers will still be facing much higher bills than last winter.

Juliette Sanders, Energy UK’s Director of Strategic Communications, said:

“After the flurry of announcements in relation to energy bills over recent months, it’s entirely understandable that many customers still have questions. In most cases, customers don’t need to do anything to benefit from the support being provided to bill payers but equally households will still be facing higher bills than last winter so it’s important for them to be aware of any actions they should take and where they can go for further support and advice.”

Five things that customers should be aware of (more general advice, including where customers can access support and advice, is available here):

  1. Prepare for “Meter Reading Day”: Providing up to date meter readings is always sensible – especially with a price rise coming in. Most suppliers will accept meter readings for a few days either side of October 1st  but check with them for specific advice. With high call volumes and website traffic likely, make the most of the different methods of submitting meter readings. Customers with a working smart meter, or on fixed-term tariffs, do not need to submit additional meter readings.
  1. £2,500 represents an average annual bill for a typical household paying by direct debit: While £2,500 is indicated by the EPG, the cap is actually per unit of electricity or gas so your bill will depend on how much energy you use and will also vary if you are a prepayment customer or pay by standard credit (as opposed to direct debit)
  1. Domestic customers will receive the £400 EBSS rebate in instalments: The payments will be split (in instalments of £66 and £67) over 6 months starting from October 2022. So while the EPG caps the amount customers are charged in the first place, the EBSS acts as a rebate.
  1. There is no need to contact energy suppliers about the EBSS or EPG: For credit customers, the discounted tariff and EBSS discount will both be automatically applied from 1 October.  Customers on prepayment meters will receive the discounted tariff automatically but will be sent vouchers for the EBSS rebate. They should ensure their details are up to date with their supplier – the vouchers can be claimed at Paypoint or Post Offices but check with supplier beforehand on the available outlets.
  1. Be aware of fraud: There have been reports of attempted email and text scams telling customers they need to apply for the support outlined above. As stated above, the support is provided automatically – so any such messages are likely to be fraudulent. If in any doubt whatsoever contact your energy supplier and report any scams to Action Fraud. Look at Take-five for advice on how to spot scams.