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How much gas and electricity does a typical household use?
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How much gas and electricity does a typical household use?

Emma Wilson 21 views
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How much gas and electricity does a typical household use?

What is the energy price cap and how is it changing?

What is a typical household?

Should I take a meter reading when the energy cap changes?

What is happening to prepayment customers?

Can I fix my energy prices?

What are standing charges and how are they changing?

What help can I get with energy bills?

It follows a drop in prices at the start of July, but there are concerns that bills remain unaffordable for some.

The energy price cap sets the maximum amount customers can be charged for each unit of energy, but actual bills depend on how much gas and electricity you use.

The energy price cap covers around 20 million households in England, Wales and Scotland and is set every three months

It fixes the maximum price that can be charged for each unit of energy on a standard - or default - variable tariff for a typical dual-fuel household which pays

From 1 October, the annual bill for a dual-fuel direct debit household using a typical amount of energy will be £1,755, up £35 a year on the previous cap.

Between 1 October and , gas prices are capped at 6.29p per kilowatt hour (kWh) and electricity at 26.35p per kWh.

The cap does not apply in Northern Ireland, which has its own energy market.

Your energy bill depends on the overall amount of gas and electricity you use, and how you pay for it.

The type of property you live in, how energy efficient it is, how many people live there and the weather all make a difference.

The Ofgem cap is based on a "typical household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, settled

The vast majority of people pay their bill this way to help spread payments across the year. Those who pay every three months

Submitting a meter reading when the cap changes means you are not charged for estimated usage at the wrong rate.

This is especially important when prices go up.

Customers with working smart meters do not need to submit a reading as their bill is calculated automatically.

About six million households have prepayment meters, according to Ofgem.

Prepayment customers were previously charged more than those who settle their bill

From 1 October, the typical annual bill for prepayment customers will be £1,707.

Many pre-payment meters have been in place for years, but some were installed more recently after customers struggled to pay higher bills.

Rules introduced in November 2023 mean suppliers must give customers more opportunity to clear their debts before switching them to a meter. They cannot be installed at all in certain households.

Fixed-price deals are not affected

They offer certainty for a set period - often a year, or longer - but if energy prices drop when you are on the deal, you could be stuck at a higher price. You may also have to pay a penalty to leave a fixed deal early if you change your mind.

Ofgem, the energy regulator, says customers who want the security of knowing what their bill will be should consider moving to a fixed deal. However, it says they should make sure they understand all the costs.

Martin Lewis, founder of Money Saving Expert, recommends checking whole-of-market energy price comparison sites to help find the best deal.

Standing charges are a fixed daily fee to cover the costs of connecting to gas and electricity supplies. They vary slightly

From October, standing charges will typically be 53.68p a day for electricity and 34.03p a day for gas.

Campaigners argue standing charges are unfair because they make up a bigger proportion of the bill of low energy users.

In response, Ofgem has said that energy firms must provide a choice of price-capped tariffs from winter 2025.

One would have a standing charge and unit rate - as is the case now - and another no standing charge but a higher unit rate. However, the proposals have been criticised for being too complicated.

The Household Support Fund, which was introduced in September 2021 to help vulnerable customers, has been extended until March 2026.

The Warm Home Discount scheme is also being overhauled. From winter 2025, anyone on means-tested benefits will automatically see £150 taken off their bills, no matter what size of property they live in.

The government's Fuel Direct Scheme can help people to repay an energy debt directly from their benefit payments.

In addition, suppliers must offer customers affordable payment plans or repayment holidays if they are struggling with bills.

Most suppliers also offer hardship grants.

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