Prime Minister Lizz Truss ’ new Energy Price Guarantee will come into effect on Saturday, October 1.
The plan, which is replacing Ofgem’s energy price cap of £3,549, means the average household in Britain will pay no more than £2,500 a year on energy bills.
This new price cap aims to save families roughly £1,000 per year on gas and electricity.
It isn't a hard cap on bills though, as what the Energy Price Guarantee does is caps the unit rates at which you're charged, along with the standing charge.
This means if you use more energy, you'll end up paying morre.
During the last price cap rise in April, experts including MoneySavingExpert founder Martin Lewis advised households to take a meter reading the day before the new figure came into place.
This is to reduce the risk of being overcharged, as customers can let their energy providers know exactly how much gas and electricity they were using before the price rises.
Applying this logic for October’s price cap means families should aim to submit an energy meter reading on Friday, September 30, the day before everything goes up.
But don't panic if you don't submit a reading by this day - most firms will let you backdate it by a few days.
Mr Lewis told viewers on his ITV show earlier this year: "That way you draw a line in the sand that says to your energy firm, I've only used this amount at the cheaper rate."
He added: "Don't start charging me more on the higher rate and estimating I use some of it afterwards."
Martin Lewis ’ advice received some backlash from energy company E-On back in March, as it meant thousands of Brits submitted their meter readings on the same day, causing the site to crash.
Other energy companies experienced similar issues, including British Gas and Scottish Power.
How to take meter readings
You can take a meter reading over the phone, online or through an app if your supplier has one.
To send a reading, you’ll need to record the first five numbers shown from left to right on your meter, to your energy supplier.
Digital meters will show the five numbers in black and white, followed by one or more red numbers, which can be ignored.
As part of the new mini-budget announced this morning, chancellor Kwasi Kwarteng has revealed the Government expects to spend £60billion on helping Brits with their energy bills.
Kwasi Kwarteng said: "Based on recent prices the total cost for the energy package for the six months from October is expected to be £60billion."
The figure comes after the Government's promise for a £400 flat payment to every household to help reduce their energy bills this winter.
The percentage increase on energy costs will vary per household, depending on how much energy they use.
Households with lower energy usage will benefit most from the £400 flat payment.
But while the new energy price guarantee is promised to last for two years, there is yet to be any confirmation on whether the £400 payment will be made next winter too.
