Nine million UK households are being urged to submit their energy meter readings by January 1 to prevent being charged inaccurately under the new energy price cap. Failure to do so could collectively cost these households £66 million, according to research by comparison site Uswitch.com.
Upcoming Ofgem Price Cap Increase: Essential Information for Households
The Ofgem price cap for energy bills is set to increase from £1,717 to £1,738 annually on January 1 for those paying by direct debit with typical energy usage. If households don’t update their energy providers with accurate meter readings, they risk being charged higher January rates for energy consumed in December.
For those on a standard variable tariff (SVT) without a smart meter, providing an updated meter reading ensures bills accurately reflect usage before the price increase.
Impact of the Price Cap Change
Households with average energy usage are expected to spend:
- £135 in December
- £165 in January
The higher January bills are due to a combination of increased rates and typically higher energy consumption during colder months. A week’s worth of energy at January rates costs £6.67 more than at December rates, highlighting the financial impact for households who fail to provide timely readings.
SVT Customers Must Submit Meter Readings to Avoid Higher Charges
- Standard Variable Tariff (SVT) customers without smart meters: Must submit readings by January 1 to avoid higher estimates.
- Fixed-rate tariff customers: Not affected by the price cap change, so no action is required.
Elise Melville, an energy expert at Uswitch.com, emphasizes the importance of taking action:
“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.”
Melville also suggests exploring fixed-rate tariffs to lock in current rates and protect against future price cap changes. Households considering switching should carefully evaluate contract lengths and exit fees.
Energy Cost Comparison and Savings Tips for Households
| Period | Monthly Energy Cost | Weekly Cost | Difference (Weekly) |
|---|---|---|---|
| December 2023 | £135 | £31.15 | – |
| January 2024 | £165 | £37.82 | +£6.67 |
To avoid overpaying on energy bills, households should ensure they submit an up-to-date meter reading by January 1 if they are on an SVT without a smart meter.
Additionally, exploring fixed-rate tariffs through tools like Uswitch.com could provide cost stability against future price cap changes. Finally, tracking energy con
