allAgents, the reviews platform, is urging all letting agents ensure rental homes have accurate energy usage meter readings by the end of this week so that householders do not fall into the trap of being wrongly overcharged by utility companies for old energy usage after 1 April

It is expected that the energy price cap increase, which is happening on Friday, will affect around 22 million customers. Those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 per year (difference due to rounding). Prepayment customers will see an increase of £708 from £1,309 to £2,017.

The increase is driven by a record rise in global gas prices over the last six months, with wholesale prices quadrupling in the last year.

It will affect default tariff customers who haven’t switched to a fixed deal and those who remain with their new supplier after their previous supplier exited the market.

The price cap is updated twice a year and tracks wholesale energy and other costs.

It stops energy companies from making excessive profits, ensuring customers pay no more than a fair price for their energy.

The price cap allows energy companies to pass on all reasonable costs to customers, including increases in the cost of buying gas.

Since the price cap was last updated in August, the current level does not reflect the unprecedented record rise in gas prices which has since taken place.

Under the price cap mechanism, energy companies will be allowed to pass on these higher costs from April when the new level takes effect.

Vincent Friel, director at allAgents, said: “With many households working on an estimated reading, if the usage remains underestimated come 1st April, these consumers will find themselves unwittingly being charged at the much higher new tariff for energy consumed prior to this date.

“Householders should compare their last bill readings with their actual consumption and if underestimated, notify their utility companies now with what they believe their actual usage will be at the end of March.

“We ask that landlords and Letting agents reach out to their tenants, making them aware of this pitfall before it’s too late.”