UK Energy Bills and How You can Save Money

Many people are aiming to cut their energy costs or lessen their environmental impact by making eco-friendlier choices at home.

The amount of energy a house uses and its carbon emissions can be found on its Energy Performance Certificate, which ranks homes from A (most efficient) to G (least efficient).

What are energy bills like at the moment?

Recent data from homes listed for sale and rent indicates that houses with better energy ratings tend to have lower yearly energy costs. For example, the average monthly energy bill for a 3-bedroom semi-detached house with an energy efficiency rating of D is around £147, which amounts to £1,768 per year. Our energy bill tracker can give you an idea of your potential bills based on your EPC rating and type of home:

Rightmove’s energy bill tracker

Property typeEPC rating BEPC rating CEPC rating DEPC rating EEPC rating FEPC rating G
1-bed flat£565£817£1,267£1,948£2,856£3,900
2-bed flat£699£1,030£1,571£2,337£3,694£3,464
3-bed terraced house£1,057£1,285£1,775£2,608£3,800£6,189
3-bed semi-detached house£934£1,331£1,768£2,516£3,791£5,935
3-bed detached house£1,060£1,488£2,039£2,822£4,113£6,707
4-bed semi-detached house£1,113£1,649£2,303£3,353£5,290£8,306
4-bed detached house£1,375£1,918£2,526£3,426£5,050£8,909
5-bed detached house£2,372£2,494£3,321£5,209£6,820£11,181

These figures are just averages and were calculated based on over 270,000 EPCs from December 2023 to February 2024 across various home sizes and EPC ratings from B to G. A-rated homes were not included due to their lower numbers.

How can I check the average energy costs of a property?

In the Energy Performance Certificate of a home, there’s an estimated yearly cost for heating, lighting, and hot water, based on the condition of the property during evaluation. For instance, changes like upgrading to double-glazed windows after the certificate was issued won’t be reflected until a new assessment is done.

The certificate often provides a list of suggested enhancements to the home, including how each suggestion could improve the property’s energy performance.

They would probably increase your home’s energy-efficiency rating and the amount you could save on energy costs.

The energy usage of a household can vary greatly depending on lifestyle, the number of people living there, and the initial energy efficiency of the property.

Why do homes with higher EPC ratings have lower average energy bills?

More energy-efficient homes require less energy for the same tasks, leading to lower bills and carbon emissions compared to less efficient homes. Many UK homes are older and not as efficient, which is why the average rating is a D. Making your home greener can save money and reduce carbon dioxide emissions. Currently, UK homes contribute about a quarter of the country’s greenhouse gas emissions.

How can I save money on UK Energy Bills?

By taking various small steps to reduce energy usage at home, you can significantly cut your energy bills. You can make no-cost or low-cost changes for long-term savings, such as adjusting your boiler flow temperature, closing curtains, or getting a smart meter. Other improvements, like a smart thermostat or better insulation, could also help.

Is there any support in place to help with energy bills?

Due to the energy bill increases in 2022 and 2023, the government provided financial support. While the same level of support may not be available, some groups might still qualify for help with energy bills. There are several grants and schemes you can explore.

How can I make my home more energy efficient?

For substantial improvements, consider retrofitting your home with solar panels, triple glazing, insulation, or a heat pump. These enhancements often increase your EPC rating. Despite the initial costs, the long-term benefits include a lower carbon footprint and reduced energy usage.

A lower carbon footprint: Reducing your reliance on fossil fuels and decarbonizing your heat source can lower your home’s emissions.

Reduced energy usage: Our energy-saving guides outline the costs of these improvements and the potential savings on your bills.

The potential for a ‘green premium’ to raise your home’s sale price:

  • Research indicates that elevating your home’s Energy Performance Certificate (EPC) grade from F to C can potentially boost the sale price by nearly £56,000, in addition to the growth in local property values (Rightmove Greener Homes Report 2023). If you’re interested in finding out how much your home might be worth, you can use an Instant Valuation tool for a quick estimation.

Programs like the Great British Insulation Scheme and the Boiler Upgrade Scheme are available to help offset some of the costs associated with making your home more environmentally friendly.

When are UK Energy Bills expected to decrease?

In February 2024, the energy regulator Ofgem announced that the energy price cap will decrease by 12% starting from April 2024, setting it at £1,690.

Energy bill forecasts from Cornwall Insights suggest that prices will continue to fall throughout the year but may increase again during winter.

However, these forecasts are subject to change due to the potential volatility in the wholesale gas market, which can be influenced by global events that affect energy prices.

Frequently Asked Questions: Clarifying your queries regarding energy consumption and costs

What is the current cost of a unit of energy?

The price of gas in the wholesale market regularly fluctuates, causing the costs that energy suppliers need to cover to vary as well. To prevent significant cost increases to consumers—like we’ve experienced in recent years—the energy price cap is in place. This cap is determined by Ofgem, which is an independent organization dedicated to ensuring fairness for energy consumers.

The cap is calculated to reflect changes in wholesale prices but aims to do so fairly. The table below outlines the maximum charges that energy companies can bill customers per unit of energy while the price cap remains effective.

 Oct-Dec 2023Jan-Mar 2024Apr-Jun 2024
Gas7p per kWh7p per kWh6p per kWh
Electricity27p per kWh29p per kWh25p per kWh

Source: Ofgem. These rates are based on average amounts for direct debit users and can vary by region.

What exactly is the energy price cap and how does it impact my payments?

The energy price cap was introduced in 2019 to cushion households from steep energy cost increases. During January to March 2024, the cap was at £1,928, a rise from the previous cap of £1,834 between October and December 2023 due to escalating wholesale gas prices. From April to June 2024, the cap has dropped by £238 to £1,690, bringing average energy bills to the lowest they’ve been since the middle of 2022.

Ofgem sets the cap and reevaluates it every three months.

The schedule for price cap announcements and the duration for each updated cap is as follows:

  • The level for 1 July to 30 September 2024 will be announced by 28 May 2024.
  • The levels for 1 October to 31 December 2024 will be announced by 27 August 2024.
  • The levels for 1 January to 31 March 2025 will be made public by 25 November 2024.

How much power does a typical household use?

Ofgem provides estimates of power usage based on your property size and the number of people living there. Energy use is measured in kilowatt-hours, known as ‘units.’ On average, homes in England, Scotland, and Wales use about 2,700 kWh of electricity and 11,500 kWh of gas each year. Gas is much cheaper per unit than electricity at the moment. Around 80% of home energy use comes from gas, mostly due to the common use of gas boilers.

Typical energy usage (property type and size)Average annual electricity consumptionAverage annual gas consumption
Low (flat or 1-bedroom house/1-2 people)1,800 kWh7,500 kWh
Medium (3-bedroom house/2-3 people)2,700 kWh11,500 kWh
High (5-bedroom house/4-5 people)4,100 kWhN/A

Source: Ofgem

To understand how specific appliances add to your power consumption, here are some average usage figures:

  • A 100-watt light bulb uses 1 kWh for every 10 hours of use.
  • A fridge-freezer uses 1 kWh for every 26 hours of use.
  • An electric oven uses 1 kWh for every 15 minutes of use.
  • A tumble dryer uses 4.5 kWh per cycle.