Nine million homes at risk of overpaying on their energy bills by £66 million if they miss important New Year’s Day deadline

• Nine million households should submit a meter reading in the next week to make sure they avoid higher energy rates from 1 January^[1]
• The difference of just a week’s worth of energy at January rates compared with December is £6.67 per home on average – and £66 million for the UK^[2]
• Households with typical consumption will spend £165 on energy in January due to higher usage and rates, compared with £135 in December^[2]
• 14% of households who admit to not submitting readings say they are unsure how to read their meter, and 12% can’t find theirs^[3]
• Rises in energy rates will hit millions of homes, but fixed tariffs could help offer certainty and stability
• Uswitch urges households to submit a meter reading to keep bills accurate, and to compare energy tariffs to beat price hikes. 

Nine million households need to read their meter by 1 January to avoid the risk of overpaying on their energy bills by a collective £66 million, according to research by Uswitch.com, the comparison and switching service.

To avoid the higher price cap, which comes into effect on 1 January, households on standard variable tariffs (SVTs) who don’t have a smart meter should record and submit their meter readings before New Year’s Day.

The average household on an SVT with typical usage is expected to spend £135 on energy in December, compared with £165 in January[2]. The rise is down to a combination of higher rates and increased usage at the start of the year.

Those on SVTs without a smart meter who fail to submit meter readings on or around 1 January risk having some of their usage estimated and possibly charged under the new higher rates. 

The difference between a week’s worth of energy at January’s rates compared with December’s is £6.67 for the average household[2]. Therefore, if those nine million households didn’t submit a reading by 1 January and their usage was estimated, just a week's worth of energy at the more expensive rates could see them overpaying by £66 million in total[2].

Households that haven’t recently submitted a reading say it’s because they do not know how to read their meter (14%), or do not know where their meter is (12%)[3]. 

Industry analyst Cornwall Insight predicts the price cap will rise by 1% in April to £1,762[4]. This could mean a third consecutive increase for households on default tariffs, following the 1% rise in January and 10% hike in October. 

A fixed tariff could help households avoid the price rise and lock in rates for at least a year, with a range of deals currently cheaper than the January price cap.

Uswitch.com is urging households to submit a meter reading this week and compare energy tariffs to see if there’s a better deal worth switching to before January’s price hike.

Elise Melville, energy expert at Uswitch.com, comments: “Submitting a meter reading may not be top of households’ to-do list this Christmas, but it’s worth doing to avoid the risk of paying more for their energy in the New Year. 

“Customers who don’t have a smart meter should aim to submit their readings before or on Wednesday 1 January, so their supplier has an updated – and accurate – view of their account.

“If you leave it any later than this, then some of your December energy usage could end up being estimated and therefore charged under the higher January rates. 

“Now is also an ideal time to look at switching to a new energy tariff, as there are a range of fixed deals currently available that are cheaper than the January price cap.

“By opting for a fixed deal, you’re locking in those rates for the duration – which means households could have price certainty and avoid the ups and downs of the price cap. Make sure you are happy with how long the contract lasts and any exit fees for leaving early.

“You can check your options by running a comparison at Uswitch.com, where you’ll be able to see available tariffs with personalised costs based on your household consumption.”   

Uswitch’s checklist to keep energy bills as low as possible:  

CHECK: Check your meter readings are up to date. If you don’t have a smart meter, submit your latest readings on or around 1 January to ensure you’re charged the correct amount for the gas and electricity you’ve used. You should regularly submit meter readings to avoid over or under paying on your bill. Don’t know how to read your meter? Check out this Uswitch guide. 

TRACK: Track your usage. It’s worth monitoring how much energy you’re using by downloading the free Uswitch app. The app connects to your smart meter and offers regular insights into your household energy usage and handy energy-saving tips.

CHANGE: Change your energy tariff. Is it time to switch? Energy rates will rise from October, so now’s a great time to assess your options and lock in lower rates. There are a number of reasonably priced fixed tariffs on the market right now, so run a comparison at Uswitch to see the range of tariffs. 

Check out the latest energy deals by running a comparison at Uswitch.com.