Nine million households risk overpaying for energy by £66million if they miss key deadline
Nine million households are being urged to take a meter reading by January to avoid being accidentally charged too much for energy.
New research by comparison website Uswitch.com shows these households risk being overcharged by a collective £66million if they don't send an up to date meter reading to their supplier before the Ofgem price cap changes. The Ofgem price cap is set to rise from £1,717 a year to £1,738 on January 1.
This is for someone who pays by direct debit and uses an average amount of energy – your bill can be more or less, depending on your energy consumption. To avoid accidentally being charged higher rates for energy used before the price cap update, anyone on a standard variable tariff (SVT) who does not have a smart meter should submit a meter reading before New Year’s Day.
Uswitch.com research shows the average household on an SVT with typical usage is expected to spend £135 on energy in December, compared with £165 in January. The rise is down to a combination of higher rates and increased usage at the start of the year. The difference between a week’s worth of energy at January’s rates compared with December’s is £6.67 for the average household.
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This adds up to a collective £66million if those nine million households don't submit a meter reading in time and they have their usage estimated by their supplier. If you're on a fixed rate tariff, your unit rates won't change with the price cap, so you don't need to submit meter reading.
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.”
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