In 2023, the cost of living in the UK will continue to rise, with the average gas and electricity bill contributing significantly to household spending. With energy prices rising each year, it's important to understand how much you'll be paying on your energy bills in the coming year.
In this blog, we'll take a closer look at the UK's average gas and electricity bill for 2023, examine the factors that affect these costs, and provide practical advice on how to reduce your energy use and save money on your bills.
Whether you're a homeowner or renter, this blog will provide you with the information you need to efficiently manage your energy bills and keep household expenses in check.
The factors that affect your UK energy bills
There are several factors that affect the cost of UK energy bills. Here are some of the most important variables:
- size of your house- The size of your home and the number of rooms, etc. can make a big difference in the energy needed to keep it running.
- The energy efficiency of your home –Basically, new buildings are more energy efficient than old buildings.
- The number of people living in your household –As you can imagine, when more people live in your home, you pay more for your energy bill.
- The energy efficiency of your devices and how often you use them
- healthy conditions– If you or someone in your household has a medical condition that requires additional heat, it could increase your energy bills. Likewise, some people depend on medical devices and devices that consume a lot of electricity.
- Lifestyle– for example, if you work from home or have children at home.
Other factors that affect energy bills are;
- wholesale energy prices– The cost of energy in the wholesale market is an important factor that affects the prices of gas and electricity bills. When wholesale prices increase, utilities typically pass these costs on to their customers.
- Distribution and Transmission Costs– The cost of delivering energy to homes is also a factor affecting energy bills. These costs are determined by the infrastructure needed to bring gas and electricity to homes, including the costs of maintaining and upgrading that infrastructure.
- Government policies and regulations– Government policies such as green taxes and renewable energy subsidies can also affect the cost of energy bills.
- wetter– Weather patterns can also affect energy bills, particularly heating bills. Colder winters can lead to higher gas bills as families use more energy to keep their homes warm.
Understanding these factors is important for effectively managing energy bills and finding ways to reduce energy usage and costs.
By actively taking steps to increase energy efficiency and exploring alternative energy sources, you can reduce your energy bills and make your home greener.
Ofgem, the UK's independent energy regulator, estimates typical UK household consumption2.900 kWhof electricity and12.000 kWhgas in one year. Let's take a look at these numbers and link them to the average home energy bill and find out what the numbers mean in practice.
The average cost of the energy bill in 2023
In 2023, the average annual energy bill for a medium-sized home (2-3 people) is estimated to be around£ 2.500for families who use gas and electricity and pay by direct debit. However,the £400 government energy bill rebateincreases the average cost£ 2.100. When you break down these annual costs, it means that the average energy bill costs£175 per month.
Remember that the cost of your energy bill depends on several factors such as: B. Type and location of your property, heating system, energy efficiency, number of residents, personal use habits and lifestyle.
GET BOILER OFFER
The average cost of the electricity bill in 2023
The average electricity bill in the UK varies depending on a number of factors such as: B. the size of the property, the number of residents and their energy consumption habits.
The estimated annual electricity bill for a medium-sized home (for a 3 bedroom house) in the UK is round£ 1.156,27, which works out to about£ 96,36a month. However, it's important to note that this is just an average and actual utility bills could be significantly higher or lower depending on the circumstances.
The average gas bill cost in 2023
The estimated annual gas bill for a medium-sized three-bedroom home is approximately£ 1.345,96- this results in an average of approx.£ 112,16a month. These numbers are subject to change.fuel pricesand other factors.
How is my energy bill calculated?
Your energy bill is typically calculated based on the amount of gas and electricity you use, measured in kilowatt hours (kWh) multiplied by the unit price charged by your energy supplier. The unit price is the price you pay per kWh of energy consumed and is set by your energy supplier.
Your energy bill may also include a base charge. This is a flat daily fee charged by your utility to cover your home's energy cost, no matter how much energy you use.
Some energy providers may not charge a base rate, but include the fixed costs of providing energy in their unit price.
In addition to the items above, your energy bill may include other charges and fees, such as: B. VAT, government fees, and outstanding debts you owe your energy supplier.
Your energy bill also includes information about how you must pay, how often you must pay, and any discounts or savings you may be entitled to.
How does wholesale gas price affect my energy bill?
Wholesale costs can have a significant impact on your energy bill. Wholesale costs are the prices energy suppliers pay to buy gas and electricity on the wholesale market, which they then pass on to their customers.
When wholesale costs are high, utilities may raise their prices to maintain their profit margins, which can lead to higher energy bills for consumers. Likewise, when wholesale costs are low, energy suppliers may lower their prices, which can result in lower energy bills for consumers.
Wholesale costs can be affected by a number of factors., such as B. Changes in energy demand, changes in supply, global events that affect energy costs, and fluctuations in exchange rates. For example, the geopolitical situation surrounding Ukraine is a big factor that is currently blamed for wholesale energy prices.
It is important to note that wholesale costs are only one element of your energy bill and utilities may also consider other costs such as transportation, distribution and operating costs when setting their prices. However, changes in wholesale costs can have a significant impact on the overall price you pay for energy. In fact, for a typical energy consumer paying by direct debit, the wholesale cost of gas and electricity is approximately 70% of the standard rate cap for a dual-fuel power plan.
How can I drastically reduce my energy costs?
Reducing energy bills at home can help you save money on your bills, reduce your carbon footprint and contribute to a more sustainable future. Here are some tips on how to reduce your energy bills at home:
- Improve your home's energy efficiency
Improving your home's energy efficiency is one of the most effective ways to reduce energy consumption and lower your bills. Here are some ways to do this:
- His home islands– Insulating your attic, walls and floors can help reduce heat loss and keep your home warmer in the winter, meaning you use less energy to heat it.
- Invest in double glazing –Installing energy efficient windows can help reduce heat loss and keep your home warmer in the winter.
- Replace old devices -Replacing old ones with newer, more energy-efficient models can help reduce energy use and save money on your bills. Look for appliances with an A+ or A++ energy rating, which are the most energy efficient.
- expand your cauldron– If you currently have an older boiler, you can offset the savings by upgrading to a new energy-efficient A-rated boiler£840per year on your electricity bills, according to theConfidence in energy savings. It's also better for the environment and saves on repair costs to keep an older boiler running.
- Install LED lights -LED lights use up to 90% less energy than traditional incandescent bulbs, which means you use less energy for lighting and save money on your bills.
- Change your energy consumption habits
Small changes to your energy consumption habits can also help lower your bills. Here are some energy-saving practices you can adopt:
- Turn off lights and appliances when not in use.
- Unplug electronics when not in use -Even when turned off, electronic components continue to consume power when plugged in. This is known as "ghost energy" or "vampiric energy". To avoid wasting energy, unplug electronic devices when not in use or use power strips with on/off switches to easily turn off multiple devices at once.
- Use a clothesline -Using a clothesline instead of a clothes dryer can help reduce energy use and save money on your bills.
- Lower the thermostat –Lower the thermostat just one degreecan help reduce energy consumption and save around £120 a year on your bills.
- Invest in a smart thermostat- Asmart thermostatallows you to set the temperature in your home based on your schedule. By automatically adjusting the temperature when you're away from home or sleeping, you can save money on your energy bills.
- Use a luz natural -Whenever possible, use natural light rather than artificial light. During the day, open drapes and blinds to let in sunlight, and consider installing skylights to let in more natural light.
- Use energy efficient showers –energy efficient showerscan help reduce water and energy consumption.
- Air Leak Seal -Air leaks from windows, doors and other areas can create drafts and increase your energy bills. Use caulking and caulking strips to seal air leaks and keep your home more energy efficient.
- Reduce water consumption –Reducing water consumption can also help save energy. Take shorter showers, fix leaks immediately, and install low-flow showerheads and faucets.
- Use a smart power strip- A smart power strip detects when devices are not in use and automatically turns them off to save power. This can be particularly useful for devices that are difficult to unplug or turn off manually, such as B. Game consoles and computer equipment.
Need help paying your energy bill?
If you arestruggling to pay your energy bills, there is help for you:
- cost of living surchargeThis is a one-time payment that is automatically paid to low-income families.
- Winter fuel payment –If you were born on or before September 26, 1955, you may be eligible for the Winter Fuel Pay, an annual payment to help with heating bills during the winter months.
- Payment in cold weather -if you takecertain benefits or support for mortgage rates. (Click the link to learn more), you may qualify for the Cold Weather Payment, a payment made when temperatures in your area drop below a certain level for a certain number of days.
- Hot House Discount –If you receive certain benefits or have a low income, you may be eligible for the Warm Home Discount, a one-time payment to help cover your utility bills during the winter months.
- Payment Plans and Utilities: Many energy companies offer payment plans and assistance programs for customers struggling to pay their bills. Contact your energy company to see what options are available to you.
Charities that can help you with rising energy bills
- DEPHER (emergency repair of plumbing and heating systems for the disabled and elderly)is an organization that provides vulnerable people with access to essential and affordable emergency plumbing and heating repairs. The organization relies on public donations to cover labor and material costs. in the winter months,DEPHERoffers free services; Discounted services are available during the summer for those in need.
- end energy poverty– They aim to influence the government and others to take action to end energy poverty and thereby improve people's health and quality of life, while trying to reduce the cost of living, create jobs and reduce carbon emissions to avoid .
- National Energy Action(NEA)– the national fuel poverty charity working to keep everyone in England, Wales and Northern Ireland warm and safe at home. It all started nearly 40 years ago, when students from the University of Durham formed a volunteer group to install attics in the homes of local senior citizens. Today, National Energy Action (NEA) employs over 70 people in England, Wales and Northern Ireland. They also work closely with their sister charityEnergy Action Scotland.
GET BOILER OFFER
Under the EPG the average annual gas and electricity bill for a direct debit customer with 'typical' levels of consumption is £2,500 from October 2022 to March 2023. This is 27% higher than the summer 2022 price cap and 96% higher than the winter 2021/22 price cap.What is the average gas and electric bill in the UK? ›
|Gas and electricity usage||Average annual consumption||Average annual cost*|
|Medium (3-bedroom house / 2-3 people)||Gas: 12,000 kWh Elec: 2,900 kWh||£2,502.26|
|High (5-bedroom house / 4-5 people)||Gas: 17,000 kWh Elec: 4,300 kWh||£3,483.70|
The Government announced on 15 March 2023 that the planned 20% increase in the EPG would be delayed from April to July 2023. Despite this, the ending of the EBSS will make it seem to some customers that energy prices increased in April. Without the EPG, customers would currently be paying more under the price cap.What is the average electricity bill for a 1 bedroom flat UK 2023? ›
Average bills for a one-bedroom flat
The average electricity use for a one-bedroom flat is around 1800kWh, which would come to an annual bill of around £302.58 a year – or £25 a month. If you're on a standing charge, you could also expect to pay between £75-90 a year.
Electricity prices in the UK rose by 66.7% and gas prices by 129.4% in the 12 months to March 2023, and were some of the main drivers of the annual inflation rate.What is the average gas bill per month in the UK 2023? ›
The average gas bill cost in 2023
The estimated annual gas bill for a medium-sized home with three bedrooms is around £1,345.96 – this works out to an average of approximately £112.16 per month. These figures can change based on gas prices and other factors.
Electricity prices are also high because they're directly linked to gas prices. Although about 40% of our electricity comes from renewables, this is combined mostly with gas-generated electricity transmitted and distributed across our electricity network.What will the average UK utility bills be in 2023? ›
Under the EPG the average annual gas and electricity bill for a direct debit customer with 'typical' levels of consumption is £2,500 from October 2022 to March 2023.What will electricity prices be in 2024 UK? ›
In the long-term, the United Kingdom Electricity Price is projected to trend around 66.69 GBP/MWh in 2024 and 50.43 GBP/MWh in 2025, according to our econometric models.Will electricity be cheaper than gas in the future UK? ›
The difference between gas and electricity prices won't increase for UK households until at least October 2024, as energy prices will be frozen until then. However, the cost of this freeze is likely to fall on the taxpayers, in one way or another.
Rent: The average rent that you will pay in UK varies depending on where you live and the type of accommodation you have. A one-bedroom flat averages at £758 (~$1000 USD) per month if you're in the city; £614 (~$810 USD) if you're outside of the city. It may be more if your energy costs are included in the rent.What is the average gas bill for a 4 bedroom house UK? ›
It's estimated that the gas usage for a four bedroom house in the UK is around 15,000 kWh, which, of course, can vary between different sized properties. With this in mind, on average, the gas bill for a four bedroom house is around £1,647 a year, or around £137 per month.What is the average UK household bill? ›
The average household bills per month UK
The average monthly household bill in the UK is £1,500. This includes rent, mortgage, utilities, council tax, and TV licence. The average monthly mortgage payment in the UK is £658. The average monthly rent payment in the UK is £1,113.
Story highlights. In the UK, a gallon of gas can easily come to around $10, says writer, compared to around $4 in the U.S.Is gas more expensive in UK than us? ›
UK gasoline prices are as much as $3 per gallon higher than in the U.S. Taxes in the UK account for 46% of the retail price of gasoline.Why is gas cheaper in US than UK? ›
Countries game the consumer cost of gasoline through taxes and subsidies, leading to wildly different prices around the globe. In the US, prices are far lower than most large economies because of comparably light taxes at the federal and state level.How much is natural gas in UK in US dollars? ›
|Usage Profile||Average monthly energy bill from 1st October 22*||Average annual energy bill from 1st October 22*|
|Low (typically 1-2 people/bedrooms)||£142||£1,706|
|Medium (typically 2-3 people)||£208||£2,492|
|High (typically 4-5 people)||£290||£3,483|
Average yearly water and sewerage bills in England and Wales are forecast to rise by £31 (7.5%) to £448 in the forthcoming year, below inflation (November CPIH inflation, which regulators set as the benchmark, was 9.3%). Water bills remain lower, in real terms, than they were a decade ago.Why are utilities so expensive in England? ›
First, around 85% of households use gas boilers to heat their homes, and around 40% of electricity is generated in gas fired power stations. Second, these are higher proportions than other European countries. Third, houses in the UK are poorly insulated compared to elsewhere on the continent.
New research reveals that the UK has the highest electricity bills. Brits pay more for their power than anywhere else on the planet.What is the price of electricity in the UK? ›
33.2p/ kWh (pence per kilowatt hour) for electricity and 10.3p/ kWh for gas, from 1 April 2022 to 30 June 2023.Will cost of living go down in 2023 UK? ›
Both the OBR and Bank of England expect the annual inflation rate to ease in 2023, as the steep rises in energy prices seen in 2022 fall out of the annual comparison. The OBR expects inflation to slow to 2.9% by Q4 2023, while the Bank expects it to slow to around 4%.Why am I using so much gas UK? ›
Why am I using so much gas in my house? If you use your central heating a lot you will use more gas. But there are other reasons why your usage may be high, for example you may have an inefficient boiler or your home may be poorly insulated.Are water bills going up in 2023 UK? ›
Our expected average household water bill for 2023/24 is £443, an increase of 6.4 per cent compared to our 2022/23 charges. Your water bill will be more or less than this amount depending on the services you receive from us and whether you have a water meter or your charges are based on your home's rateable value.What is the future power price UK? ›
Key Turning Points.
There is good news for households who benefit from smaller-than-feared rises in energy costs if prices remain at current levels. Typical annual energy bills are now forecast to be £2,400 next year (2023-24), down from the forecast of £3,000 at the time of the Autumn Budget (the level of the 2023-24 EPG).What will energy prices be in 2025 UK? ›
Prices are expected to rise to £150/MWh in Winter 2025 due to closures of nuclear power stations, delays to Hinkley C, and increasing high-cost peaking capacity.Is it cheaper to heat your house with gas or electric? ›
Therefore, it is 2.5 times more expensive to run an electric furnace than gas, on average. The U.S. Energy Information Administration estimated that electric heating costs for U.S. homeowners would average $1,359 in winter 2022 to 2023, while homes heated by natural gas would cost about $930 over the same time period.Is electric heating cheaper than gas 2023 UK? ›
Cost of Electric Heating
Electric heating is another option for heating your home in the UK. However, it is generally considered to be more expensive than gas heating. The cost of electricity in the UK is influenced by several factors, including wholesale prices, transmission costs, and government levies.
Gas cookers are great for simmering food as they offer quick and easy-to-control heat temperatures. Overall, the cooker hobs provide even heat for the base of your pan. Therefore, you spend less time preparing your dinner to get it cooked properly. They are also cheaper to run, compared to electric cookers.Is rent cheaper in UK or US? ›
Overall, the cost of living in the U.K. is 0.49% lower than in the United States. Rent overall is about 22.55% lower in the U.K. You would need $4,700 per month to finance a modest lifestyle in London, compared to $5,822 for the equivalent lifestyle in New York City.How much does it cost to live in England in US dollars? ›
|Renting 1 bedroom (per month)||$1,903 (USD)||$1,473 (USD)|
|Renting 3 bedrooms (per month)||$3,845 (USD)||$2,482 (USD)|
|Average property price||$655,656 (USD)||$404,942 (USD)|
Average Rent in the UK
Rent prices per month vary greatly depending on the region. For instance, in Greater London it's around 1,700 GBP (2,200 USD), much higher than the national average of around GBP 1,000 (USD 1,300 USD).
The Data's Key Findings
The average four-bedroom home in Greater London costs £1,285,638, compared to £286,301 in Greater Manchester – meaning London is four-and-a-half times more expensive.
Overall. A grand total for the average bills for 2 bed flat per month is just £65.33 a month, or £784 for the year (for gas and electricity). This will differ from supplier to supplier, but is a good figure to go off when looking at your charges.How much are bills for a 1 bed flat London? ›
But depending on where you live in London, a one bedroom flat can cost anywhere from £1,200 to £2,000+ per month. When you consider the average Londoner's salary in 2023 is £40,000 (before tax), it's no surprise that so many city dwellers end up flat sharing!What are the most common bills in the UK? ›
Bills, bills, bills
There's council tax, electricity and water bills, TV licence payments. It can be overwhelming, but it doesn't need to be. We break down the most important bills you need to be thinking about and explain how to sort it simply, so you can stop worrying.
Key Points. Average spend on food per person in the UK is around £44 per week (£189 per month), including groceries and dining out. Typical UK household spends about £3,601 on groceries and £1,744 on meals at restaurants and takeaways yearly.What is the average food bill by UK household? ›
Average Food Costs. The average annual food cost for a typical UK household is around £5,924 heading into 2023 (based on the average 2.4 people per household), including nearly £300 spent on non-alcoholic drinks. The average weekly food cost for the typical UK household is around £114, up around 15% from a year ago.
At 3.82 U.S. dollars per gallon in October 2022, regular all formulation retail gasoline prices in the United States were considerably lower than in Hong Kong or the Central African Republic, which reported the highest gasoline prices in the world at the end of October 2022. Norway also ranked high this year.What countries have cheaper gas than America? ›
- Venezuela. Venezuela, while overall a rather impoverished nation, is rich in oil reserves and fossil fuels, and uses that particular wealth to provide their people with virtually free gasoline. ...
- Libya. ...
- Iran. ...
- Angola. ...
- Algeria. ...
- Kuwait. ...
- Egypt. ...
Gas is always cheaper in the US than Canada, for a variety of reasons, one of which is taxes. Simply enter the town or city you are looking for prices. Note that gas is sold in litres in Canada. One US gallon = 3.79 litres.Why is fuel more expensive in UK than USA? ›
' The UK is mostly self-sufficient in terms of petrol but imports most of its diesel, meaning it is likely to see steeper price rises. Dr Amrita Sen, Director of Research at Energy Aspects, added that petrol prices could rise to around £2.40 a litre.Is the US the only country with high gas prices? ›
Prices are the same all over the world. Oil producers can sell to whatever country they want to sell. Now, gas taxes may be higher in certain parts of the US than other countries and other parts of the US have lower gas taxes.How expensive is gas in United Kingdom? ›
|pence per litre||pence per litre||pence per litre|
|→ No change forecast||→ No change forecast||↘ Should fall|
Liquefied natural gas
LNG is imported to the UK via ship and reaches the UK's three LNG terminals in Milford Haven and Medway. In 2022, the UK has sourced its LNG from 12 different countries. The United States has been the largest source of LNG, followed by Qatar, Peru, Angola and Russia.
You may be surprised to learn that the UK currently sources around 50% of its natural gas from its own territory, with the North Sea accounting for an estimated 50%. The remaining 50% of UK gas supplies are imported from various different countries around the world, including Norway, the United States and Russia.Are Americans buying less gas? ›
(NewsNation) — Many Americans are buying less gas to offset rising costs. The current U.S. average for a gallon of regular-grade gasoline dropped six cents over the past two weeks to $4.37 per gallon, but some say gas is still too expensive. “One third of adults reported driving less.How much gas and electric does the average person use per day UK? ›
household electricity consumption works out at between eight and 10 kWh per day. And, for reference, the average gas usage in UK households is between 32 and 38 kWh per day.
The average monthly household bill in the UK is £1,500. This includes rent, mortgage, utilities, council tax, and TV licence. The average monthly mortgage payment in the UK is £658. The average monthly rent payment in the UK is £1,113.What is the average electricity and gas bill in the UK for 4 bedroom house? ›
The average gas bill for a 4-bed house
Gas in the UK costs around 10.03p per kWh, while daily standing charges are around 28p. So, that means that your monthly bill for a typical 4-bed home will be around £1,647 per year, or around £137 per month.
At a cost of 15p/kWh, you have a daily running cost of £28.80. This means that monthly, an electric panel heating system will cost £624, whereas a gas heating system will cost £864. Furthermore, this means that the money you save per month using electric panel heaters will payback your upfront cost in 2 months.What is a typical household UK? ›
Dividing the overall number of usual residents in households by the overall number of households gives the average household size. In 2021, this was 2.4 residents per household (2.4 residents per household in England and 2.3 residents per household in Wales).How much electricity does a UK house use per day? ›
What is the average electricity usage per day in the UK? The average UK household will use between 8.5kWh and 10 kWh of energy. This is only a guideline figure as there are many influencing factors that affect this figure.What are common bills to pay in UK? ›
- Council Tax.
- Electricity and Gas.
- Home Insurance.
- TV licence.
The average wage that was seen as a sum on which people could live comfortably is £16,300 more than the £33,000 median annual pay for full-time employees in the tax year ending in April 2022, according to Office for National Statistics (ONS) figures.How much are bills for a 2 bed house UK? ›
The average gas bill for a 2-bed house.
Your typical 2-bed house uses around 10,000 kWh of gas per year. As of January 2023, gas prices sat at around 10.03p per kWh, with standing charges at around 28p per day. This equates to a yearly cost of £1,132 for a 2-bedroom home, and a monthly gas bill of £94.
Water will cost you, according to Water UK average annual combined water and sewage is £408 a year, or £34 a month in 2021/22. This is made up of an average of £194 for the water bill and £204 for the sewage bill. Obviously, the amount you pay will vary depending on where you live.What is the cheapest way to pay energy bills UK? ›
The cheapest way to pay for your energy is by monthly Direct Debit. That means the supplier knows exactly how much they're getting per month, it's automatically transferred to them, and they don't have to worry about chasing bills or cashing cheques or anything like that.