The New Year is fast approaching, and while it’s a time for celebration, it’s also crucial for millions of UK households to take action to avoid unnecessary energy costs.
With the Ofgem Energy Price Cap set to rise by 1% on January 1, 2025, energy providers, including British Gas, Octopus, Eon, EDF, and OVO, are urging customers to submit their meter readings.
Failing to act could result in being charged higher rates for energy used in December, potentially costing households millions. Here’s a detailed guide to ensure accurate billing and savings.
Understanding the January Price Cap Increase
The Ofgem Price Cap safeguards households from excessive charges on standard variable tariffs, but even small increases can significantly impact bills.
From January 1, 2025, the cap will rise from £1,717 to £1,738 per year, an increase of £21 annually for the typical dual-fuel household.
This rise is due to higher wholesale energy costs and increased demand during winter. For an average household:
- December energy costs: £135
- January energy costs: £165
The weekly difference amounts to £6.67, translating to a potential £66 million collective overpayment if customers fail to submit their meter readings. Taking action is essential to avoid these unnecessary charges.
Why Submitting Meter Readings Is Crucial?
For customers without smart meters, suppliers rely on estimated usage, which can often be inflated, especially during colder months when energy usage is higher.
By submitting actual readings:
- You ensure December’s energy usage is charged at lower December rates.
- Avoid the risk of being overcharged for the energy you’ve already consumed.
If customers delay, a portion of their December usage could be billed at January’s higher rates, leading to avoidable expenses.
Uswitch research highlights that 14% of Britons are unsure how to submit readings, while 12% don’t even know where their meters are located.
Understanding how to take readings is the first step toward accurate billing.
Step-by-Step Guide to Reading Your Energy Meter
Taking an accurate meter reading depends on the type of meter you have. Here’s a detailed guide:
- Standard Electricity Meters: Record the first five numbers from left to right, ignoring any red numbers.
- Meters with Two Rows: Note readings from both rows.
- Dial Electricity Meters: Check the direction of the dials (alternate directions for each dial). If the pointer is between two numbers, choose the lower one. If between 9 and 0, write down 9.
- Digital Metric Meters: Note the first five numbers (left to right) and ignore decimals.
- Digital Imperial Meters: Record the four black numbers, skipping the red ones.
Submitting these readings promptly ensures your December usage is billed correctly. For convenience, use online portals, apps, or customer service lines provided by your energy supplier.
Key Deadlines for Meter Reading Submissions
Each energy supplier has specific deadlines for submitting meter readings to ensure accurate billing and prevent overcharges.
Adhering to these deadlines is crucial, especially with the Ofgem price cap increase coming into effect on January 1, 2025. Here’s a detailed breakdown:
British Gas
- Submit your readings by January 14 through their app, web form, or by contacting them via telephone. This allows for accurate billing even after the price cap rises.
E.ON Next
- Ensure your readings are submitted by January 6. You can do this conveniently through their online account, via email, or by calling their customer service line.
OVO Energy
- Customers have until January 11 to submit readings. Use the OVO app, your online account, or your phone to update your usage data.
Octopus Energy
- The deadline for meter readings is January 8. Submissions can be made via the Octopus app, email, or online form.
EDF Energy
- To avoid billing discrepancies, EDF strongly advises customers to submit readings by January 1, ensuring December’s lower rates are applied.
Submitting readings as close to December 31 as possible is highly recommended. This ensures that your energy usage during December is billed at the lower December rates rather than being estimated at January’s increased rates.
Missing these deadlines could result in being charged higher amounts for energy used before the price cap rises, leading to avoidable overpayments.
Taking proactive action by knowing your supplier’s deadline and submitting readings on time will save you from financial surprises in the New Year.
Smart Meters vs. Manual Meter Readings
Smart meters offer a seamless way to track and submit energy usage. Unlike manual meters, smart meters automatically send usage data to suppliers, ensuring accurate and up-to-date billing.
For those without smart meters:
- Regular manual submissions are essential to prevent overbilling.
- Consider upgrading to a smart meter for convenience and real-time insights into your energy consumption.
Installing a smart meter not only saves time but also allows households to better manage their usage, reducing overall costs. For households still using manual meters, timely readings remain the only way to ensure accuracy.
Fixed Tariffs: A Shield Against Rising Costs
While the Energy Price Cap protects households on standard variable tariffs, its 1% increase in January and a predicted 1% rise in April 2025 underscore the potential for escalating costs.
Fixed tariffs can provide stability by locking in rates for a set period. Currently, some fixed tariffs are cheaper than the January price cap, offering an opportunity for households to:
- Avoid future price cap increases.
- Plan and manage energy budgets with consistent rates.
With predictions of another 10% price cap rise in October, fixed tariffs are a smart way to shield against unpredictable energy market fluctuations.
Conclusion
The New Year marks not only a fresh start but also the chance to take control of your energy costs.
Submitting accurate meter readings before January 1, 2025, ensures fair billing and prevents unnecessary overpayment at January’s higher rates.
For those on standard variable tariffs, consider upgrading to a smart meter or switching to a fixed tariff for long-term savings.
Don’t wait; act now to secure accurate bills and peace of mind in the coming year.
