More than seven million households across the UK are being urged to take immediate action to avoid being incorrectly charged on their energy bills as the new year begins.
The January 1 Deadline and Price Hike
Energy prices are set to rise in January, with the typical annual bill estimated to reach around £1,758. According to research from Uswitch, a typical home will spend approximately £166 on energy in January, a significant jump from the £140 estimated for December. This increase is driven by both colder weather pushing up usage and the higher rates coming into effect.
The most at-risk customers are those on standard variable tariffs who do not have a smart meter. If they fail to submit an accurate manual meter reading on or around Thursday, January 1, their supplier may have to estimate their usage. This could result in energy consumed in December being charged at January's more expensive rates.
How to Avoid Overpayment and Secure Savings
Energy expert Ben Gallizzi from Uswitch.com advises households to take a simple step: "read their energy meter over the festive period." This ensures suppliers have an accurate view of consumption before the price cap change.
Furthermore, households are encouraged to proactively compare and switch tariffs. Uswitch reports that there are currently 27 fixed deals priced below the incoming January price cap. Switching to one of these could offer substantial savings.
"Currently, there are a range of fixed deals available that are around £233 cheaper than the January price cap for the average household," said Gallizzi. He urges customers to run an energy comparison immediately to lock in lower rates before winter bills peak.
Top Fixed Deals Versus January Price Cap
Based on typical household usage, here are some of the cheapest fixed deals available as of December 15, 2025:
- Outfox Energy (12-month fix): Average annual bill of £1,525 – saving £233.
- Ecotricity (12-month fix): Average annual bill of £1,527 – saving £231.
- Fuse Energy (13-month fix): Average annual bill of £1,549 – saving £209.
Electricity prices for customers on default tariffs are due to rise by 5%, adding further pressure to household budgets during an already expensive winter period.
Immediate Steps for Households
To protect yourself from incorrect and inflated bills, you should act now:
- Check your meter readings are up to date, especially if you don't have a smart meter.
- Submit a manual reading on or very close to January 1st to prevent estimated billing.
- Compare energy tariffs and seriously consider fixing your rate to secure a cheaper deal before the price cap increase.
Taking these steps could be the difference between an accurate bill and an unexpectedly high charge as we move into 2026.
