Millions urged to check energy meters as price cap rises in January

Millions of households risk higher energy bills in January if they fail to submit a meter reading before the end of December. While most households now have a smart meter, around seven million households are not on fixed tariffs and do not have a smart meter, according to energy researchers at Uswitch, meaning their bills will rise when the price cap increases. Consumers are urged to submit a meter reading by 1 January to ensure they are billed on actual usage rather than an estimate, which is often higher, and older meters require readings by 1 January for accuracy.

Ofgem will raise the energy price cap by 0.2 per cent, or 28p a month, from £1,755 to £1,758 for a typical dual-fuel household, with electricity prices rising by about 5 per cent. Higher non-wholesale costs have offset the lower price of wholesale energy, which has fallen over the past three months, according to the regulator. The increase includes funding for Government policies such as the Sizewell C nuclear project, which will add around £1 to monthly bills. The Government has previously announced a £150 reduction in bills from April, but it remains unclear how and when that cut will feed through to households.

Uswitch estimates the average January energy bill will be about £166, up from roughly £140 in December, reflecting higher usage and the cap increase. Households that do not submit meter readings around the turn of the year risk their December usage being estimated by suppliers, potentially leading to inaccurate bills.

Ben Gallizzi, energy expert at Uswitch.com, said: “Households should take a moment to read their energy meter over the festive period to avoid the possibility of being charged incorrectly at January’s higher energy rates. Customers who don’t have a smart meter should submit their readings before or on Thursday 1 January, so their supplier has an updated – and accurate – view of their account.”

With uncertainty still surrounding energy prices next year, many households are being urged to consider fixed tariffs. The cheapest fixed deal on the market offers an annual saving of about £233 against the January price cap, according to Uswitch, and there are around 25 fixed deals cheaper than the cap that could shield households from further rises in April. A regularly updated guide to fixed-energy deals is available from Uswitch.

The fixed-deal landscape varies by provider and region, but analysts say switching to a fixed tariff now could lock in savings if prices continue to edge higher. Fixed deals typically run for a year or longer and require a payment method that suits the chosen term; some deals come with exit fees or restrictions on changes mid-term. Consumers should compare multiple options and consider how long a fixed rate lasts and whether it suits their expected usage.

For households that remain on variable tariffs, the cap remains the primary guardrail against sudden spikes. The cap itself is designed to limit typical annual bills, but actual costs depend on how much energy a household uses and the tariff structure. As the market evolves, regulators and consumer organisations emphasize that accurate metering and proactive switching can significantly influence bills over the winter months, underscoring a broader message: act early, compare options, and read meters regularly to avoid surprises when bills are recalibrated in January and beyond.