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What Is The Average Household Energy Usage?

Understanding your average energy usage is crucial in today’s world, where energy consumption plays a pivotal role in environmental sustainability and financial management.

The UK has seen rising energy costs in recent months, and while it may seem that changing news headings could be the solution, it won’t make any difference to your energy bills!

If you’re worried that you’re spending too much on your current energy bill, then this article is a must-read. We’ll examine your average electricity usage and consumption, and provide invaluable insights and tips on how to manage your “typical” domestic consumption values.

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What Is The Average UK Household Energy Usage?

When we refer to the average household energy usage in the UK, we mean the amount of energy consumed by the average household over a specific period. This calculation takes into account both gas and electricity consumption, usually within a one-month timeframe.

Gaining an understanding of your average energy usage is vital for homeowners who aim to manage their energy use effectively. Before we delve into the intricacies of average energy usage, it’s important to understand what exactly constitutes a unit of energy.

In terms of electricity consumption; electricity is measured in kilowatts per hour (kWh). This refers to the number of kilowatts consumed by an electrical device in one hour. There are 1000 watts in a kilowatt.

According to Ofgem, the UK’s energy regulator, the average energy consumption for UK homes is approximately 3,800 kilowatt-hours (kWh) of electricity per year, with an average of 12,000-kilowatt hours (kWh) of gas. This is based on an “average” 3-bedroomed house.

However, the average energy consumption for UK households depends on several factors, such as:

  • The size of the house
  • How many people live in the home
  • The electrical items used
  • Usage and lifestyle patterns

Top tip: Use this simple formula to calculate how much electricity you use. Cost of energy = Energy consumption (in kWh) X Cost per kWh unit (£).

The Average Energy Bill By House Size

When it comes to energy bills, house size plays a significant role in determining the average cost. Larger homes require more energy to heat, cool, and power appliances as opposed to smaller homes.

Studio or 1-bedroom apartment

These smaller spaces typically consume less energy due to their compact size, with an annual average ranging from £600 – £ 800 for electricity and £490 for gas.

2 -3 bedroom house

Larger houses generally require more energy to heat and run appliances when compared to one-bedroomed homes. A 2- or 3-bedroom house usually has an annual average bill of £900 – £1,200 for electricity and £730 for gas.

4+ bedroom house

Larger houses with four or more bedrooms can expect an annual average bill of approximately £1,400 – £1,800 for electricity and £1,000 for gas.

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Electricity Bill: What’s The Average Spend?

According to Ofgem, the average electricity consumption in the UK for 3-bedroomed homes is in the range of 2,500 – 2,900 kWh per year. This costs homeowners around £820 – £1,000 per annum (roughly £75 – £90 per month).

However, it’s important to note that this figure can vary depending on multiple factors, such as:

  • Usage habits
  • The size of the house
  • Energy-saving measures (if any)
  • The efficiency of appliances

The cost of electricity is determined by two main factors: the unit rate, measured in kWh, and your average electricity consumption. Your electricity bill is based on how much electricity you use, and different energy suppliers offer various rates. It’s essential to shop around for the most cost-effective option.

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Gas Bill: What’s The Average Spend?

Gas is primarily used for heating and hot water, making it a significant contributor to energy bills. According to Ofgem, the average consumption of gas in the UK for 3-bedroomed homes is between 10,000 and 12,000 kWh per year. With average gas rates of £0.10 per unit, this equates to an annual charge of £1,206.25 (including the annual £106.25 gas standing charge).

The cost of gas is influenced by the unit rate and the volume of gas consumed (meaning how much energy you use). The unit represents the price charged per unit of gas, typically measured in cubic meters (m3).

Similar to electricity, factors such as insulation, house size, boiler efficiency, and personal consumption habits contribute to how much gas you use – and the size of your bill.

Energy Bill: What’s Included?

It’s crucial to understand how much energy your household uses, including the factors that contribute to your overall bill. This information helps to track your energy usage and indicates where you can implement energy efficiency measures.

Typical components include:

1. Energy usage

This refers to the amount of energy you use in kWh and makes up the bulk of your energy bills. It’s the combined gas and electricity usage in your home.

2. Standing charges

This refers to the fixed daily costs included in your bill to cover maintenance and upkeep of the energy supply network. These standing charges are applied regardless of your energy usage.

3. Unit rates

This refers to the price you pay per unit of energy consumed, measured in kilowatt-hours (kWh). These rates can vary depending on your energy supplier and may be subject to fluctuations in the energy market.

4. VAT

This refers to the value-added tax automatically included on your energy bills at a rate of 5%.

5. Climate change levy

This refers to the tax on energy consumption designed to encourage households and businesses to reduce their overall energy use.

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What Affects The Average Gas And Electricity Bill?

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:

House size

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.

Tariff selection

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.

Energy efficiency

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:

Kettle

To boil a 3.000-watt (3kWh) kettle for 10 minutes will cost you £0.06.

Iron

To use a 2,000-watt (2 kWh) iron for 10 minutes will cost you £0.04.

Oven

Using your 3,000-watt (3 kWh) oven for one hour will cost you £0.36.

Washing machine

To run a 2,100-watt (2.1 kWh) washing machine on a one-hour cycle will cost you £0.25.

Tumble dryer

To run a 2,500-watt (2.5 kWh) tumble dryer for 30 minutes will cost you £0.15.

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Money Saving Tips To Reduce Your Energy Bills

Small changes can have a huge impact on reducing your average energy consumption while saving money on your monthly bills. Here are a few tips to start implementing today:

  • Lowering your heating by one or two degrees can save money in the long run. Rather wear socks and jumpers indoors to resist the urge of raising the temperature.
  • Switch to LED light bulbs and turn lights off in rooms which are not in use.
  • Do not overfill the kettle – only boil the amount of water you need.
  • Consider switching to air fryers for quicker cooking times, as opposed to ovens.
  • Do one or two loads of laundry per week instead of everyday washing.
  • Be mindful of hot water use; limit bathing and take two-minute showers instead (you’ll save water too!).
  • Switch to energy-efficient (A++) appliances wherever possible.
  • Consider using an energy consultant or broker to help reduce your utility bill.

To read more about how you can manage your business gas and electricity consumption effectively, visit our homepage for more information.

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