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 £1,717, or about £143 per month.
  • Energy bills are influenced by factors like wholesale costs, energy usage habits, and home energy efficiency.
  • Switching from a standard variable tariff to a fixed rate deal could lead to significant savings.

What is the Average Energy Bill in the UK?

Knowing the average energy bill can help you:

  1. Compare your bills and energy usage with the national average.
  2. Understand how the "average" is used in the context of the energy price cap, which is based on typical usage.

For a medium-sized household in a 3–4 bedroom house, the average annual energy bill for a dual-fuel customer (gas and electricity combined) is £1,717. This works out at £143 per month under the current price cap.

What are the average energy unit rates and standing charges in the UK?

As shown in our energy prices per kwh article, we can use the average unit rate and standing charge across the country to work out the average energy bill for small, medium and large households. 

For reference the table below shows the average unit rate and standing charge.

  Electricity Gas
Unit rates 24.50p per kWh 6.24p per kWh
Standing charge 60.99p per day 31.66p per day

What is the average gas and electricity bill by house size

As shown on our average gas and electricity usage page, we can see the average usage for the different sized homes across the UK. Combining this with the average unit rates and standing charges, we can then work out the average energy bill by house size.

Energy Use Number of bedrooms Gas usage (kWh) Electricity usage (kWh) Average annual dual fuel energy bill
Low 1-2 7,500 1,800 £1,247.17
Medium 3-4 11,500 2,700 £1,717.27
High 5+ 17,000 4,100 £2,403.47

Key Factors Affecting Energy Bills

The cost of your energy bill depends on several factors:

  • Energy Usage: Larger households with higher usage will pay more. Even among similar-sized homes, habits like heating and appliance use can create variation.
  • Tariff Type: Fixed rate tariffs tend to be cheaper than standard variable tariffs, while prepayment meters typically have the highest rates.
  • Home Energy Efficiency: Insulation, double glazing, and energy-efficient appliances can lower your bills.
  • Payment Method: Paying by Direct Debit often comes with discounts compared to other methods.
  • Market Prices: Wholesale energy costs—driven by global events, supply, and demand—directly impact tariffs.

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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