Households are being urged to submit gas and electricity meter readings before the Ofgem price cap rises on July 1

Households are being urged to submit gas and electricity meter readings before the Ofgem price cap rises on July 1

Millions of energy customers are being urged to take a photograph of their gas and electricity meters before midnight on June 30 to avoid being charged higher rates when the Ofgem energy price cap increases on July 1.

Money saving expert Martin Lewis has warned households that failing to submit an up-to-date meter reading could result in suppliers estimating energy usage at the new, more expensive rates.

The advice applies to customers on standard variable tariffs who do not have a functioning smart meter that automatically sends readings to their energy supplier.

Taking a meter reading before the price cap changes could help ensure energy used before July 1 is charged at the lower rate rather than the higher prices that come into effect from Tuesday.

From July 1, the Ofgem energy price cap will increase by 13 per cent, with the annual bill for a typical household rising from £1,641 to £1,862, an increase of £221.

The price cap does not limit the total amount households pay for energy but instead sets the maximum unit rates suppliers can charge for gas and electricity based on typical consumption.

Customers who use more energy than the average household will therefore pay more than the headline figure.

Without an accurate meter reading, suppliers may estimate how much gas and electricity was used before and after the new rates take effect.

This could result in some energy consumed on June 30 being billed at the higher July 1 rates if suppliers rely on estimated rather than actual readings.

Mr Lewis said: "When I first did this I suggested meter reading day and I crashed virtually every energy site.

He explained that customers no longer need to submit their readings immediately before or after midnight because most suppliers now allow readings to be backdated to June 30 if they are submitted within the following few days.

Mr Lewis shared the advice during his BBC Sounds and Spotify podcast.

He also noted that many households pay by monthly direct debit, with costs spread across the year to avoid significantly higher payments during the winter months.

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 said higher household energy bills were likely to reduce disposable income, leaving families with less money to spend on eating out, holidays and shopping.

Ms Streeter added that the increase could also create additional pressure for retailers and hospitality businesses as consumers tighten their budgets.

Energy Secretary Ed Miliband acknowledged the impact of the increase on households.

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 Labour is continuing to invest in clean, homegrown energy and improve the energy efficiency of homes ahead of winter in an effort to reduce bills over the longer term.