Three-day energy bill delay warning as millions risk overpaying £66m | Personal Finance

Millions of households have just three days to submit a meter reading to avoid collectively overpaying £66 million on their energy bills, according to Uswitch.comthe comparison and switching service.

The warning applies to the nine million households on standard variable tariffs (SVT) and without smart meters.

These households must submit their statements before the higher price cap comes into effect on January 1, ensuring they will not be charged the higher January rates for energy used in December.

The average household using an SVT with typical usage is expected to spend £135 on energy in December, compared to £165 in January. This increase is due to the increase in prices and higher consumption at the start of the year.

Uswitch says the difference between a week’s energy usage in December and January rates is £6.67 for the average household. If all nine million households benefiting from SVT fail to submit their statements, it could result in a collective overpayment of £66 million.

Despite the emergency, some households could face difficulties. Uswitch found that 14% of households who haven’t submitted a reading recently don’t know how to read their meter, and 12% don’t know where their meter is.

Elise Melville, energy expert at Uswitch.comsaid: “Submitting a meter reading may not be the first priority for households at Christmas, but it’s worth doing to avoid the risk of paying more for their energy in the New Year.

“Customers who do not have a smart meter should aim to submit their statements by or by Wednesday 1 January, so that their supplier has an up-to-date – and accurate – view of their account.

“If you leave it until later, some of your December energy usage could end up being estimated and therefore billed at the higher January rates.”

Price cap and fixed price industry analyst Cornwall Insight predicts the price cap could rise again in April 2025 to £1,762, following a 1% rise in January and a 10% rise in October.

Ms Melville highlighted that fixed rates could help households lock in their rates and avoid further increases. She said: “Now is also a great time to consider moving to a new energy tariff, as there are currently a range of cheaper fixed deals than the January price cap.

“By opting for a fixed deal, you lock in these rates for the duration – meaning households could have price certainty and avoid the ups and downs of price capping. Make sure you are happy with the length of the contract and any exit fees if you leave early.

“You can check your options by making a comparison on Uswitch.comwhere you can see the available rates with personalized costs based on your household consumption.