Everyone in the UK urged to take energy meter reading by 1 January | Personal Finance | Finance

By January 1, millions of households need to submit their energy meter readings to avoid higher estimated bills, according to recent findings.

Failure to provide accurate readings could lead to suppliers relying on estimated usage, which is often higher, and resulting in an estimated nine million households overpaying by as much as £66 million, warns comparison site Uswitch.

Households on standard variable tariffs without smart meters are at the greatest risk, as suppliers may estimate their December energy usage and charge it under January’s higher rates, unless readings are submitted before the new year.

Elise Melville from Uswitch said: “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.”

She added that now is a good time to switch to a new energy tariff, with fixed deals available that are cheaper than the January price cap. 

Opting for a fixed deal can ensure price certainty and protection from cap fluctuations, but she advised checking the contract length and exit fees. 

Britain’s independent energy regulator, Ofgem stated that the price cap will increase to £1,738 per year for a typical dual-energy household starting 1 January 2025.

The difference in energy costs between December and January for a typical household could be £6.67 per week, amounting to £66million across the UK. 

Households with average energy usage are expected to spend £165 in January due to increased consumption and higher rates, compared to £135 in December.

Uswitch revealed that 14% of people needing to submit meter readings were unsure how to do so, while 12% didn’t know where their meter was located.

Households are encouraged to contact their energy supplier for guidance on submitting readings and to locate their meter by checking their supplier’s website or using online resources for common meter types.