Households around the UK have only a few weeks to take a vital metre reading in order to reduce their energy expenses.
Gas and electricity bills will soon be capped at £2,074 per year, according to Ofgem.
It means that families struggling with the cost of living will save £426 per year compared to the current Energy Price Guarantee, which caps bills at £2,500.
However, the energy regulator, which assesses the price cap every three months, has stated that it is critical that all households take a metre reading on 1 July to ensure that energy suppliers do not overcharge you based on an incorrect or outdated tariff.
If you believe your bill does not reflect the lower prices that went into effect two weeks ago, you can contest it with your energy supplier, but only if you have correct and up-to-date data.
Experts underlined that having an updated metre reading – and regularly monitoring your bills – is the best way to ensure you’re protected by the energy price cap, which has dropped from an all-time high of £4,279 at the start of the year.
Energy bills, which have risen in tandem with food inflation, are expected to stay high until at least 2030, according to the consultancy group Cornwall Insights.
It said: “Despite the cap falling from the sky-high prices of the past two years, the figure remains over £1,000 per year more than the price cap levels seen prior to the pandemic.
“We do not currently expect bills to return to pre-2020 levels before the end of the decade at the earliest.”
The drop on July 1 is the first time households on default tariffs have seen prices fall since the worldwide energy crisis began more than 18 months ago, as Russia invaded Ukraine.
The energy price cap limits how much suppliers can charge per unit of gas and electricity. However, there is no cap on how much you can be charged for energy, so if you use more, you will continue to face a bigger bill.
Most direct debit energy clients currently pay 10.31p per kilowatt hour (p/kWh) for gas, 33.21p/kWh for electricity and a daily standing fee of 29.11p for gas and 52.97p for electricity.
Prices for gas and electricity will increase to 8p per kilowatt hour (p/kWh) from July 1, although standing costs will remain the same.
Householders who don’t pay by direct debit will pay slightly more although prepayment meter customers will be charged the same rates.