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Householders have been urged to submit energy meter readings by the end of the year or risk overpaying their bills.
Ofgem announced in November that the energy price cap will increase from £1,717 to £1,738 per year for a typical household using both electricity and gas, from January 1, 2025.
Those who don’t have a smart meter and fail to submit a reading by the end of the year will likely be billed based on an estimate, which could see December usage charged January prices, according to price comparison website Uswitch.
A week’s worth of energy in January will cost on average £6.67 more per home per week compared to December, which collectively across Britain totals £66 million
Elsie Melville, energy expert at Uswitch, said: ‘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.
What is the energy price cap?
The energy price cap is a cap set on the maximum price energy companies can charge households for each unit of energy used on a standard, or default, tariff.
Ofgem, the government’s energy regulator, re-evaluates the level for a typical dual-fuel household every three months.
This applies to everywhere in the UK except Northern Ireland, which has its own energy market.
‘Make sure you are happy with how long the contract lasts and any exit fees for leaving early.’
EOn told its customers that those on a standard variable tariff and who do not have a smart meter should submit a reading before January 5 to avoid being billed based on an estimate.
Industry analyst Cornwall Insight has predicted that the price cap will rise by 1 per cent in April to £1,762, reports This Is Money.
This follows a 1% rise in January last year and a 10% rise in October.
Regulator Ofgem advised homes to check if they can get a better deal with an alternative energy provider, and consider moving to a fixed rate deal (as opposed to a standard variable rate) to potentially lock in a cheaper rate.
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