Energy customers have been warned about the risk of their bills going up in just two days. The energy price cap is set to increase, with electricity rates rising by 5% for those on a default tariff.
Uswitch has told households without a smart meter to submit a meter reading before Thursday, January 1, to avoid entering 2026 with inaccurate energy bills. Homes on a default tariff with average usage are expected to spend £166 on energy in January, compared with £140 in December. The increase is due to a combination of higher rates and increased usage in winter as we warm our homes. Those on standard tariffs who do not have a smart meter and do not submit meter readings on or around January 1 risk having some of their December usage charged at the more expensive January rates. Households on a standard variable tariff could also save hundreds by switching to a cheaper fixed deal now and cutting their energy costs while heating bills are at their highest.
Currently, 27 fixed deals are available, which are priced lower than the January price cap. The cheapest fixed deal on the market offers savings of around £233 compared with the January price cap for the average household.
Uswitch is urging households without a smart meter to submit a meter reading this week and compare energy tariffs to see how much they can save right now.
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, January 1, so their supplier has an updated – and accurate – view of their account.
“Energy bill-payers can also get ahead of January’s price hike by fixing at cheaper rates right now. Currently, there are a range of fixed deals available that are around £233 cheaper than the January price cap for the average household.
“If you can switch to a deal cheaper than the January price cap, now is a good time to make the change. We urge customers to run an energy comparison as soon as possible to see how much you could save off your heating bills.”
