As the latest rise in the energy price cap comes into effect, consumer champion Sarah Ingrams from Which? has highlighted six common pitfalls that could result in customers overpaying for gas and electricity.
From July 1, the price cap—the maximum amount suppliers can charge per unit—rose, impacting those on standard variable tariffs with immediate effect.
She pointed out that while switching to a fixed-rate tariff is one way to avoid future price cap increases, many people still fall into avoidable traps.
The first issue is forgetting when a fixed-rate deal ends.
Fixed tariffs typically last for one year, 18 months, or two years, and when they expire, customers are often moved to a standard variable tariff governed by the price cap.
Under current regulations, energy suppliers must notify customers 49 days before their fixed deal ends, but Ms Ingrams advised checking in advance, either via a statement, online account, or the supplier’s app.
Customers can switch without penalty during the 49-day notice period.
Another common mistake is relying on “average usage” estimates when comparing tariffs.
Ofgem, the energy regulator, recently lowered the “average” usage figures, which means some price comparisons now look artificially cheaper.
Ms Ingrams advised using actual usage data from your account or a recent bill when comparing tariffs.
She also warned against assuming larger energy companies always offer better value or service.
Although around 92 per cent of households are supplied by British Gas, Octopus Energy, EDF Energy, E.on Next, Ovo Energy, and Scottish Power, customer satisfaction can vary significantly.
Ms Ingrams said: “Octopus Energy is a Which? recommended provider,” but some of the other big names “sit at the bottom of the table”.
“Choosing a smaller supplier could result in better customer care and a more competitive deal.”
Switching offers are another potential trap.
While many suppliers promote incentives such as boiler cover or rewards for off-peak usage, Ms Ingrams said these are “not always worth your money or attention.”
She advised checking whether you already have similar cover in place or if it would be cheaper to purchase separately.
Similarly, consider whether you can realistically use energy during the specified hours to benefit from time-sensitive tariffs.
Not reading the terms and conditions is a frequent oversight.
Ms Ingrams recommended checking exit fees, contract length, how direct debits are calculated, and whether rates change at different times of day.
Customers receiving the Warm Home Discount or those with solar panels should confirm whether their new tariff includes these features.
Finally, failing to submit regular meter readings can lead to inaccurate billing, especially for those without a smart meter.
Ms Ingrams said submitting monthly readings “helps build an accurate picture”.
She also suggested checking regularly that your readings are being registered correctly, and said any marked as “‘E’ or ‘estimate’ means something isn’t working correctly.”
With energy costs remaining a major household expense, small mistakes could add up to significant extra costs over time.