Average Gas & Electricity Bill

Switching your energy supplier is one of the most effective ways to reduce your utility bills. To make an informed decision, it's crucial to understand your current annual gas and electricity expenses and how they compare to the average UK household. This knowledge allows you to determine whether the savings offered by a new supplier are truly beneficial.

To help you secure the best energy deal, we've outlined key information on typical gas and electricity costs and provided guidance on switching suppliers.

Key Takeaways

  • The average annual energy bill for a medium-sized UK household on a fixed rate tariff is approximately £899, equating to about £75 per month.
  • Energy bills are significantly affected by factors like wholesale costs, energy usage habits, and the efficiency of the household.
  • Switching energy suppliers, particularly from standard variable tariffs to fixed rate deals, can lead to considerable savings on energy bills.

What is an average energy bill?

The cost of your energy bill depends on how and when you use energy, the size of your house, the number of people living in it, and even the part of the country you live in.

For a medium sized household in a 3 to 4 bedroom house, the average energy bill on a fixed rate tariff is £899. This would work out at an average monthly energy bill of £75 per month.

The type of tariff you're on also has a big impact on your bills. Each energy supplier charges a different unit rate and standing charge on their tariffs, so who you choose to supply your energy will also affect costs.

If you have a prepayment meter, you'll be paying even more for your energy, as rates on prepayment plans are among the highest on offer.

You should only use the above figures as a guide, as it's tricky to put a figure on the cost of the average energy bill. This is simply because there are so many things that affect how energy bills are calculated, including:

  • Wholesale energy costs - The price each energy supplier pays for gas and electricity can be affected by everything from an increase in demand to higher maintenance costs. The price can even go up as a result of unrest in an oil rich country, and this can all impact your household energy bills.
  • The amount of energy you use - The average energy bill can be tough to calculate, simply because people's energy usage varies. Energy use obviously varies depending on the size and type of house, along with the number of people living in it, but even if you compare two families of four living in a similar house, you could find the amount of energy each uses differs greatly.
  • Energy efficiency measures - The cost of your energy bills will also be impacted by the amount of energy efficiency measures you have in place - a house with loft and cavity wall insulation, double glazing and energy efficient appliances, such as an A+++ washing machine, you'll have lower bills than a similar house without.
  • The way you pay your energy bills - You may not realise it, but the way you pay your energy bills affects the cost, as suppliers often offer a discount to anyone who pays by Direct Debit.

As you can see from the tables above, standard variable energy bills are higher than fixed rate energy bills, so it makes sense to switch to a fixed rate deal at renewal and not let your supplier roll you on to its standard rate.

How the estimated energy usage is calculated

Estimated energy use is calculated by taking the average rates for both fixed and standard variable rate tariffs, and multiplying them by the average usage figures as set by Ofgem, the energy regulator.

What affects the amount of energy you use?

The amount of energy your household uses is primarily affected by the number of people and appliances in your house. In general, the more people and more appliances, the more energy you use.

The energy efficiency of your home also affects the amount of energy you use. If your house has cavity wall and loft insulation, it'll use less energy than one without proper insulation, simply because more of the heat is kept within the home, meaning your heating system doesn't have to work as hard. You'll also use less energy if you have an energy efficient boiler and use energy efficient appliances.

The way you use energy also affects the amount you use, so try to avoid leaving appliances on standby and always turn off lights in empty rooms to avoid needlessly using electricity.

Compare your usage against the average

To compare your energy use against the UK average, take a copy of your latest bill and check the amount of gas and electricity your using. Once you have a figure, compare it to the figures above to see how you measure up.

If your figures are higher than average you need to consider ways to cut your average energy usage, or think about improving the energy efficiency of your home.

To compare the cost of your energy bills against the UK average, check the cost of your last energy bill and compare it to the monthly, quarterly or energy figures in the tables above.

If you're paying above the average rates, it's time to switch to a better deal.

But the simplest way to compare your energy costs against the average is to run an energy price comparison with The Energy Shop. We'll show you a range of money-saving deals, alongside how much each could save you if you switch.

To compare energy prices, enter your postcode and house number above, and we'll find a deal to cut the cost of your gas and electric bills. You just then need to choose the deal you prefer, and we'll help you switch energy supplier and save money.

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