More than seven million households could be charged incorrectly on their energy bills
More than seven million households risk being hit with higher energy bills if they don’t act by January 1. Energy prices will rise somewhat in the new year, with a typical home’s annual bill estimated to be around £1,758.
Households on standard variable tariffs without a smart meter are being warned that failing to act could mean some of their December energy use is charged at January’s higher rates, as the energy price cap rises. Research from Uswitch shows a typical household will spend around £166 on energy in January, compared with £140 in December, as colder weather pushes up usage and higher rates kick in.
Electricity prices are due to rise by 5% for customers on default tariffs, adding to winter bill pain at a time when many households are already stretched. Those most at risk are customers without smart meters who do not submit a manual reading on or around January 1.
Without an accurate reading, suppliers may estimate usage, potentially charging December consumption at the more expensive January prices.
Households are also being urged to consider switching to a fixed tariff now, with a number of deals currently priced well below the incoming price cap. Uswitch says there are 27 fixed deals on the market cheaper than the January cap, with the cheapest offering savings of around £233 a year for a typical household.
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.”
Cheapest fixed deals compared with January price cap
Supplier – Fix length – Average annual bill – Saving vs Jan price cap
- Outfox Energy – 12 months – £1,525 – £233
- Ecotricity – 12 months – £1,527 – £231
- Fuse Energy – 13 months – £1,549 – £209
Source: Uswitch.com. Prices correct as of December 15, 2025. Savings based on typical household usage. Tariffs subject to change and vary by region.
What households should do now
- Check meter readings are up to date, especially if you don’t have a smart meter
- Submit a reading on or around January 1 to avoid estimated bills
- Compare tariffs and consider fixing now to lock in lower rates before winter bills peak