Millions of UK households are being urged to take immediate action to prevent being overcharged on their energy bills as the new year approaches. The warning comes ahead of a change to the energy price cap set by the regulator, Ofgem.
New Price Cap Takes Effect in January
Ofgem has confirmed that its new price cap will be set at £1,758 for a typical household. This cap will be in force from 1 January 2026 until 31 March 2026. The cap limits the amount suppliers can charge per unit of gas and electricity for customers on standard variable tariffs, and also sets a maximum daily standing charge.
Money Saving Expert (MSE), the consumer website founded by Martin Lewis, has issued crucial guidance. It states that for the approximately 65% of homes on a variable tariff, the average annual energy cost will see a marginal increase of 0.2% from the start of January.
Why a Meter Reading is Essential
To ensure you are billed accurately and not charged at the new, slightly higher rate for energy used before it came into effect, submitting a meter reading is vital. You should aim to take this reading as close to 1 January as possible.
"This stops your supplier from estimating your usage, and potentially assuming you've used more at the new higher rate than you actually have," explains MSE. "There will be winners and losers here – but if you do a meter reading, you know it's fair."
Providing a reading gives your supplier a clear cut-off point, showing exactly how much energy was consumed before the new cap began, guaranteeing you are charged correctly.
Supplier Deadlines You Must Know
While the ideal date for a reading is on or around 1 January, several major suppliers allow a short grace period for submissions. According to Money Saving Expert, the key deadlines for backdating readings are:
- EON: Customers have until 6 January.
- Octopus Energy: Customers have until 8 January.
- EDF Energy: Customers have until 9 January.
- OVO Energy: Customers have until 11 January.
- British Gas: Customers have the longest window, until 14 January.
Households are strongly advised to check their own supplier's specific policy and submit a reading well before their individual deadline to avoid any estimated billing discrepancies.
