Millions of people across the country are being urged to act before October 1 to ensure they aren’t being overcharged on their energy bills.

Anyone who has a standard energy meter at their home should take a meter reading before the new energy price cap comes into force on October 1.

The average household will see their bills fall by £151 this year, as typical gas and electricity bills will be capped at £1,923.

If you have a smart energy meter, you will not need to supply a reading to your energy supplier.

Why should I take an energy meter reading?

It is important that households take a meter reading before the drop in the price cap on October 1.

An updated meter reading will stop your supplier from estimating bills that aren’t accurate to the amount of energy you have used.

Taking a meter reading is still important even though bills are dropping, as it will help you if you are disputing a bill in the future.

The cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will pay more.

The standing charge – the roughly £300 paid each year by households just to access gas and electricity – has not been included in the cap and will not fall.

Are you paying too much for your energy?

Money Saving Expert Martin Lewis has previously revealed how customers who pay for their energy by direct debit could save as much as £200.

Speaking on ITV’s The Martin Lewis Money Show, he explained it was crucial for everyone to check how much they should be charged.

Firstly, he recommended all viewers send regular meter readings. This will help energy providers charge you the correct amount for the energy you are using, and prevent them from estimating your bill, which can lead to you being overcharged.

If you think you are being overcharged based on providing regular meter readings then you can use an online direct debit calculator. This will work out how much you should be charged based on your usage.

Martin Lewis said calculator results had been “very powerful” in getting energy providers to reduce your direct debit charges, and he recommended calling them up with your results.

Lastly, if you still think you are overpaying, you can request to be moved on to a variable direct debit where you will only pay exactly what you have used.

However, this means your bills will be much higher in the winter, when you will not have the “smoothing effect” of having paid more in the summer while using less energy.

The Money Saving Expert also warned that paying when you receive your monthly bill could be up to 10 per cent more expensive than regular direct debit payments.