In April 2022, the UK energy price cap increased by an incredible 54%. This places a huge strain on households and businesses across the country as we attempt to meet these additional financial pressures.
If we can calculate our average energy bills, we can understand how much of our budgets we need to allocate to this basic cost and help reduce the impact the price hikes have on our lives.
However, this usually isn’t straightforward. It depends on the size and type of your home, your energy-saving habits and how energy-efficient your property is.
In this article, we will share the average energy bill for a home in the UK, based on size and type. Use this information as the basis for your energy-saving calculations then put our energy-saving tips into place.
Average energy bill based on size
Every household has a different average energy usage, depending on the size of their home and how many people live there. Keep reading to find out our estimates for small, medium and larger homes.
Small properties with one to two-bedroom and three to four residents use an average of 8000kWh of gas per year and 2000kWh of electricity. This could mean an average monthly energy bill of £66 or £795 per year.
Medium homes with three bedrooms and three to four residents consume around 12,500kWh of gas per year and 3100kWh of electricity. If this applies to you, expect your average monthly energy bill to be around £97 per month or £1163 per year.
If you have five or more people living in your home and four or more bedrooms, you’re likely to use around 18,000kWh of gas per year and 4,600kWh of electricity. This would mean an average monthly energy bill of £137 per month or £1,639 per year.
What affects your energy bills?
The numbers we’ve shared above are a rough estimate and shouldn’t be taken as fact.
This is because your energy bills are affected by a variety of factors including where you live, your home insulation, how energy-efficient your appliances are and how savvy you are when it comes to energy usage. Whether you use fossil fuels, renewables or generate your own energy will also have an effect.
The most significant part of this is the amount of energy you use. This is measured using a unit called the kWh (kilowatt-hour). One kWh equals a thousand watts of energy used in an hour. Every appliance you use requires a different amount of energy.
For more information on the average energy consumption of your household appliances, see the calculations shared by the Centre for Sustainable Energy.
Energy network costs
Your energy bills aren’t based solely on the energy you use. Various network costs are also added to your bill.
This includes the cost of distributing power, the use and maintenance of energy lines, general operating costs, the cost of meeting government rules to lower emissions and save energy, plus other extras such as VAT.
How to reduce your energy costs
There are many simple ways you can reduce your energy costs and ease the burden it places on your household or business. Here are some of our suggestions:
1. Get an EPC
An EPC (Energy Performance Certificate) assesses the energy efficiency of your home and suggests certain changes you can make to reduce your consumption.
2. Make your home more energy-efficient
By insulating your home, using LED lights, turning off appliances when not in use, switching to renewables and getting an air source heat pump, you could boost your energy efficiency and save money.
3. Use a smart metre
Many energy companies base your bills on estimates, not accurate metre readings. This means you could end up paying more than you should, or paying less and ending up with a nasty bill when a reading is finally taken. Avoid this by installing a smart meter that sends accurate readings directly to your supplier, or taking your own readings.
4. Consider changing your tariff
Changing energy tariffs can often help reduce your energy bills. However, the recent energy price rise has affected companies across the country, so you may not find as many good deals as before. Having said that, it’s always worth doing your research!
With the recent increase in energy prices, we’re all looking for ways to reduce our energy bills. Start by calculating your average energy bill based on the size and type of your house, get an EPC then improve your energy efficiency to help you reduce your consumption and save money.