What is the average energy bill in the UK?

The average monthly energy bill in the UK is £147 for a medium-sized household (2-3 people). This includes both gas and electricity. Costs vary depending on location, household size, and energy usage. 

According to the IEA, although bills have started to lower in recent years, UK energy bills are still above pre-Covid times. And, as we're now embracing the colder months where we'll use more energy to heat and light our homes, understanding your energy bill will help you take control of your monthly budget and make sure you're on the right energy deal for your home.

Here, we break down everything you need to know about energy bills, including: 

• How are energy bills calculated?
• The average UK electricity and gas bill
• What makes up your energy bill
• What affects your energy bill, and;
• How to reduce your energy bill 

How are energy bills calculated?

Your energy provider charges for each unit of energy you use in kilowatt-hour (kWh).

How much energy you use, the region where you live, your energy supplier and tariff, your payment method, and your meter type, all affect your final bill. 

Typical consumption figures can be a helpful way to work out how your energy usage compares to an average figure.

If you're an EDF customer on the standard variable tariff, find your daily standing charge and unit rates based on the government's energy price cap rates.

So, because of all these variables, calculating an 'average' household energy bill is quite tricky.

Below are recent typical consumption figures for average households. 

How much does the average UK household's gas and electricity cost a year? 

What makes up your energy bill?

There are several factors that affect your bill and likely make it different to the costs shown above. This pie chart shows an estimate of the different costs that can make up the average dual fuel energy bill - using Ofgem's 2021 figures:

Breakdown of average UK energy bill components:

1. Wholesale - 34.63%
2. Network - 25.35%
3. Operating - 18.62%
4. Environmental and social - 15.33%
5. VAT - 4.76%
6. Other - 2.24%

What affects your energy bill?

Whatever tariff you're on, or whoever you choose to supply your energy, the rule stays the same: the more energy you use, the higher your bill. The less energy you use, the lower your bill!

• The size of your house - for each bedroom, expect to roughly use 2,500kWh of gas per year to heat that space!
• The number of people living in your home - more people means higher energy usage as there are more meals to cook, more phones to charge and more baths and showers being taken

• Where you live - Ofgem sets one price cap for energy across the UK. However, prices can be different depending on the region you live in. Prices are affected by:

  - Energy supply infrastructure: Locations far from power generation sites have higher costs for receiving energy

  - Gas grid access: Areas with less connections to the gas grid use other fuels, which increases costs

  - Types of assets used for energy generation: areas with more renewable sources, such as wind farms, usually get lower electricity prices

  - Local distribution charges:  Local authorities and energy suppliers set different charges based on the costs of keeping the network running

• Energy efficiency -  a typical house with no insulation will lose 33% of heat through walls and 25% through the roof⁽¹⁾, and a detached house can be less energy efficient than a similar-sized terraced house, as there's a greater chance of heat loss through walls - learn how you can better insulate your home
• Appliances - buying A-rated appliances can help you reduce bills, as the better the rating, the more energy-efficient the appliance, so the more energy and money you'll save in the long term
• Explore our handy kilowatt hour (kWh) guide!

The type of tariff you're on and meter type

Which type of meter measures your energy use and the tariff you choose to use to pay for your energy, also affects how much money you'll pay each month and year.

Tariffs:

• With a fixed price energy tariff the unit price you pay for energy doesn't change, even if wholesale energy prices go up or down - locking in your prices means no nasty surprises
• A standard (variable) tariff usually changes every three months - this means your unit costs can go up or down due to changes in wholesale energy prices
• Tracker tariffs energy rates go up and down in line with Ofgem's price cap and wholesale energy prices; however, your standing charge usually stays fixed, which can make a tracker tariff cheaper than a standard variable tariff
• Check out our price cap predictions to get a greater idea of how we predict energy prices will change in the future, or compare different gas and electricity deals
• Are you on the right energy tariff for your home?  See if you can save by getting a new energy quote
• Learn more about switching energy provider!

Meter type: 

• Standard electricity meter: your electricity costs the same at any point in the day
• Smart meters: these automatically send your energy usage readings to your energy provider⁽²⁾ so your bills are based on your actual energy use, rather than an estimated idea of what you used which will help save you money - many of the better priced energy tariffs are only available if you use a smart meter
• Economy 7 meter or another time-of-use meter: with these meters there's an off-peak rate for electricity (often through the night) and an on-peak rate (often during the day) - read 7 facts about economy 7 meters

The region of the UK you live in

Depending on where you live in the UK, the price of your gas and electricity will vary slightly. 

The different prices reflect the different network costs associated with delivering energy to your home in that region.

You read more about how energy is delivered to your home in our National Grid blog post.

The method you use to pay your bill

How you pay your energy bill can also affect the price of your gas and electric unit rates. 

Most customers pay by Direct Debit as many suppliers offer a Direct Debit discount. With Direct Debit, you can spread the higher winter costs throughout the year and pay a more consistent amount each month. 

Sometimes your Direct Debit payment may rise or fall. Find out about the potential reasons for a Direct Debit rise. 

However, you can also pay the whole amount using Direct Debit whole amount, or through a different payment method. Read more about our different ways to pay. 

How to reduce your energy bill 

Making sure you're on the right energy deal for your home is essential. According to Martin Lewis: 

"Now we know the Price Cap until the end of March 2026, it's easy to compare to the cheapest fixed deals which are around 15% less (c. £265/yr cheaper on a typical bill) and have guaranteed rates, so you know they won't rise for at least a year. That means switch to a fix and your energy use immediately costs less, and will continue to do so until at the very least the 31 March 2026."

There are also lots of others ways we can lower the amount of energy we use at home, to help us save cash and carbon! 

1. Turning down the thermostat from 22°C to 21°C can save around £90 a year - most people find the most comfortable temperature to range from 18°C to 21°C.
2. Turn down the flow temperature on your combi boiler to save around £65 per year on your heating bill.
3. Get a smart meter if you're an EDF customer to see exactly how much you're spending on energy.

Read more of our energy savings tips to help lower your energy use and save money. 

Make your home energy efficient

Get support with your energy bills

We understand that making energy payments can be difficult at times, so please don't face these problems alone. Get in touch and chat through support options available to you, such as setting up a payment plan or exploring benefits.  Learn more of how we can help you.