This refers to the cost of standard variable tariffs – fixed deals are currently unavailable due to the energy markets’ volatility. Consequently, the average bill is heavily influenced by the energy price cap, which is determined by Ofgem and is based on wholesale market prices.
This price cap sets a limit on the amount energy providers can charge per unit of gas and electricity. However, as the wholesale market increases, so does the price cap.
Depending on how much electricity you consume, several other factors will affect your average energy consumption bill. These include:
As mentioned earlier, larger homes tend to have a higher average energy usage compared to smaller homes.
Similarly, SMEs and large businesses will also have different energy usage.
Choosing the right energy tariff that aligns with your energy consumption patterns can help save you money. Consider fixed-rate, time-of-use, or green energy tariff options, based on your preferences and needs.
Energy provider charges
Utility prices are determined by the energy provider you choose and are influenced by the energy price cap, based on an average energy consumption rate.
Your usage habits
This refers to how much electricity and gas your lifestyle habits consume. Your average energy consumption can be reduced significantly by implementing energy-efficient methods in your daily routine.
The efficiency of your appliances, insulation, and heating system directly impacts your average energy usage. Investing in good-quality, energy-efficient (A++) appliances can lower your average electricity consumption, resulting in cheaper bills.
Here’s a quick reference to the price your standard household items consume. For the sake of this example, we have used £0.12 per unit:
To boil a 3.000-watt (3kWh) kettle for 10 minutes will cost you £0.06.
To use a 2,000-watt (2 kWh) iron for 10 minutes will cost you £0.04.
Using your 3,000-watt (3 kWh) oven for one hour will cost you £0.36.
To run a 2,100-watt (2.1 kWh) washing machine on a one-hour cycle will cost you £0.25.
To run a 2,500-watt (2.5 kWh) tumble dryer for 30 minutes will cost you £0.15.