Working out the average electricity bill in the UK depends on so many different factors. The price of your own Electricity bill will depend on the kind of home that you have, where you live, what type of heating and appliances you use in your home or business and how many people live or work there. Other factors to consider would be how energy-efficient the building is.
What’s the Average Electricity Bill in the UK Per Month?
Based on the average yearly consumption of 3,600 kWh, the average power bill in 2021 was £764. That amounts to £64 per month, which is an increase from 2020 of 7.5%.
In 2021 the average annual electricity expenditure now comes to £1339 overall.
However, since this data was compiled, energy prices have gone up. Risen by over £700 on April 1, 2022. Due to default tariffs, the Direct Debit client’s annual bills increased from £1,277 to £1,971 per year (based on average usage). This October, a new increase in the price cap is anticipated.
According to the most recent forecasts, the energy price cap will increase by 77% to £3,500 on October 1 and then increase even more in January 2023. Money Saving Expert Martin Lewis has called on the government to urgently intervene.
Why Are Energy Bills So High Right Now?
This year, households will pay significantly more for energy because of supply and demand in the world wholesale market.
Due to the increased cost of electricity due to this demand, the price is now being passed on to the consumer.
You are only impacted by the energy price ceiling if you reside in England, Wales, or Scotland.
The Utility Regulator oversees electricity pricing in Northern Ireland. On the Consumer Council website, you can learn more about the resources available to you for paying your energy bills.
What Makes Up My Energy Bills?
There is more to your electricity bills than just the price of the energy you consumed. Your energy bill consists of a wide range of expenses.
- Just over a third of your energy bill is made up of the wholesale price of power, which is the cost to your energy provider to purchase it.
- Just over a quarter of your bill is made up of networking, or the cost of using and maintaining the pipes and wires that deliver energy to your home.
- A component of your account is made up of operating charges, which are fees the energy provider must pay.
- Several government-sponsored initiatives to save energy and cut emissions also include energy firms. Users pay for them, and an additional percentage is added to their energy bills.
- The balance of your energy bill is made up of profit margins, VAT (Value Added Tax), and other expenses.
- Most electrical products are rated for energy efficiency from “A” (the most energy efficient) to “G.” (least energy efficient). Less energy is required to use the product, which could result in a lower energy cost, a higher rating.
How Can I Use Less Electricity?
You may start considering ways to conserve energy and try to lower your rates now that you are aware of the average power bill for the UK and the components of your own bill.
Fortunately, there are numerous approaches to take without even changing suppliers.
You can start by utilising electricity sensibly if you want to reduce your energy costs.
You might want to raise your EPC certificate rating if you want to sell your house. By doing this, you could be able to sell your house faster and for a higher price.
A guide to Energy Performance Certificates (EPCs) published by the Energy Saving Trust offers helpful advice on how to make adjustments that will keep your home warm and cost you less money.
Your bills can be decreased by identifying which household appliances use the most electricity, however, the following can also help:
- Unplugging phone chargers
- Turning off devices that are not in use
- Switching to energy-efficient lightbulbs
Does Switching Tariff Help?
Unusually, switching tariff won’t save you money right now. You will be switched to your energy company’s ordinary variable tariff once any fixed rate has expired. This rate is less expensive than any fixed rate currently being provided.
What Can I Do if I’m Struggling?
It can be stressful for you to not be able to pay your electrical bills. You could be worried about accruing debt and unsure about how you’ll make ends meet.
Contact your provider before you miss payments or go into debt. Your supplier can assist you in several ways, one of which is by creating a payment schedule that suits your needs.