Nine million households risk overpaying for energy by £66million if they miss key deadline
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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.
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.
