According to January 2022 figures from industry watchdog Ofgem, the average dual fuel variable tariff was £1,277 a year, or £106.41 a month.[1] So we can estimate that gas and electricity costs around £3.50 a day.
But average figures are a bit of a red herring. This is because average prices tend to be similar to the energy price cap – which makes average costs seem lower than they actually are. And as each bill depends on a number of factors such as location, usage and tariff type, they’ll vary immensely.
With the price cap set to rise from 1 April, average energy bills will also increase. But the latest January 2022 figures from Ofgem found that the cheapest tariff available was £1,205 a year, or £100 a month.[2]
Gas and electric bills in winter
Naturally bills for energy are going to be higher in the winter. Keeping a typical house warm in winter can easily cost around half of the yearly bill. In the summer you can let the sun do most of the work.
If winter in the UK is particularly harsh, costs will go up. Remember the ‘Beast from the East’ in 2018? That cold freeze brought a lowest temperature of -14°C to the Scottish mountain ranges. Unsurprisingly, energy consumption was higher than usual during that period, according to government data.
Gas and electric bills by people and property
We can break down the average gas and electric bill in the UK into small, medium and large sized houses. The following are statistics we calculated, based on Ofgem and government data for 2021.
Small house or flat, with 1 or 2 bedrooms or occupants
With an annual gas output of 8,000kWh and an electricity output of 1,800kWh
- Average monthly utility bill of £66, annual cost £802
- Average cost per person of £33 a month, £401 a year
Medium house with 2 or 3 bedrooms for 3 people
With an annual gas output of 12,000kWh and an electricity output of 2,900kWh
- Average monthly utility bill of £95, annual cost £1,151
- Average cost per person of £31 a month, £383 a year
Large house with 3 or 4 bedrooms and 5 people
With an annual gas output of 17,000kWh and an electricity output of 4,300kWh
- Average monthly utility bill of £132, annual cost £1,592
- Average cost per person of £26 a month, £318 a year
Cheapest energy prices in UK vs most expensive
Right, now we’ve dazzled you with data, we’re gonna tell you to move. Only joking. But the average price does change dramatically depending on where you live in the UK.
Let’s focus on electricity for this one. In 2021, areas like Northern Ireland, the South East, South West and South Wales paid 19.5p/kWh on average to supply electricity to their homes. But Merseyside and North Wales were the most expensive, paying as much as 20p/kWh.
Yorkshire, the North West, North East and East Midlands were among the cheapest, according to government data.
Reducing your energy costs
Whatever your situation, you can always reduce the cost of gas and electricity in your home.
Check out our tips to cut down energy costs for simple, practical things you can do to save money on your bills. Making a note of the most expensive appliances to run is a great place to start. Do you really need these? If you can live without them, it’ll help.
Alternatively, have a look at the average room temperatures and see how your home compares.
[1]Average standard variable tariff on the market price from Ofgem‘s ‘Retail price comparison by company and tariff type: Domestic (GB)’ chart. Average price cap set by Ofgem from 1 April 2022.
[2]Average cheapest available tariff on the market price from Ofgem‘s ‘Average tariff prices by supplier: Standard variable and fixed default vs cheapest available tariffs (GB)’ chart. Average price cap set by Ofgem from 1 April 2022.
