Nine million homes could be hit with £34m energy bill

Nine million households need to read their meter by 1st April to avoid the risk of overpaying on their energy bills by a collective £34 million, according to research by Uswitch.com, the comparison and switching service.

To avoid the higher price cap, which comes into effect on 1st April, households on standard variable tariffs (SVTs) who don’t have a smart meter should record and submit their meter readings on or around 31st March.

Households are also being urged to act now to switch away from price-capped tariffs, with a choice of fixed deals on the market offering savings of around £244 compared with the April price cap for the average household. These are the highest savings seen on the market since May 2024.

Those on SVTs without a smart meter who fail to submit meter readings on or around 1st April risk having some of their usage estimated and possibly charged under the rates which are 6.4% higher.

The difference between a week’s worth of energy at April’s rates compared with March’s is £3.62 for the average household. Therefore, if those nine million households didn’t submit a reading by 1 April and their usage was estimated, just a week’s worth of energy at the more expensive rates could see them overpaying by £34 million in total.

Energy prices remain volatile, and industry analysts don’t expect to see significant falls in the price cap in the near future. A fixed tariff could help households avoid the price rise and lock in rates for at least a year, with a range of deals currently cheaper than the lower January price cap, let alone the higher April price cap.

Ben Gallizzi, Energy Expert at Uswitch.com, said “With the price cap rising on 1 April, it’s important to submit a meter reading to avoid paying higher rates on any energy that you don’t need to.

“Now is also an ideal time to look at switching to a new energy tariff, as there are a range of fixed deals currently available that are around £239 cheaper than the April price cap for the average household.

“By opting for a fixed deal, you’re locking in those rates for the duration – which means households could have price certainty and avoid the ups and downs of the price cap. Make sure you’re happy with how long the contract lasts and the  exit fees you may have to pay to leave early.

“There are an increasing number of options, so it’s important to run a comparison to see what is right for you. We’re urging households to run a comparison at Uswitch.com, where you’ll be able to see available tariffs with personalised costs.”