With energy prices on the rise again this winter, understanding the average UK energy bill can help you choose the best tariff for your home. Below, we cover recent data for various energy tariffs and the average annual costs for households using gas and electricity. All figures are accurate as of late 2024.
Energy Bills On Different Tariff Types
1. Average Energy Bill On Variable Tariffs
Variable tariffs, or standard variable tariffs (SVTs), are subject to frequent price changes. From October to December 2024, households on these tariffs will pay an average annual bill of around £1,717, assuming standard gas and electricity use (12,000 kWh for gas and 2,900 kWh for electricity). This cap sets maximum prices per unit but may vary by region and usage.
Variable tariffs can save you money, but can go up and down. This is an important consideration for people trying to budget their spending.
2. Average Energy Bill On Fixed-Rate Tariffs
Fixed-rate tariffs lock in unit prices for a set contract term, usually 12 to 24 months. These provide more stability, as your unit price remains constant regardless of market changes. Recent figures show that annual bills on fixed-rate tariffs are typically a bit lower than variable rates, averaging between £1,600 and £1,800. Fixed-rate plans offer more predictability, but could mean you miss out on savings when market prices are lower.
3. Average Energy Bill On Pre-Payment Meters
Pre-payment meters often result in higher costs per unit of energy compared to direct debit payments. As of the latest 2024 data, households using pre-payment meters are estimated to pay between £1,900 and £2,000 annually, as pre-payment plans include both the unit cost and daily standing charges. This pricing is also regulated by the Ofgem price cap, though it’s generally higher due to different operational costs. Plus, households on pre-payment meters can have periods without power if they haven’t topped up their meter.
If you’re on a pre-payment meter and looking to switch, you can find out how and if the move is right for you in our guide to switching.
4. Average Energy Bill For Homes With Solar Panels
Households with solar panels often benefit from lower annual energy costs. Solar energy can significantly reduce reliance on the grid, which offsets usage costs. Households with efficient solar setups reduce their annual bill by an average of £300-£500 every year. Additionally, those enrolled in the Smart Export Guarantee (SEG) receive payments for excess electricity they export back to the grid.
he choice between variable, fixed-rate, and prepayment tariffs affects annual energy costs significantly, and solar panel installation offers further potential savings. As energy prices remain high, comparing tariffs and considering renewable options like solar can help reduce bills in the long run.
At Energy Advice Helpline, we believe everyone should have access to energy-saving technology like solar panels. That’s why we support households across the UK to get solar panels for their home, whether through a government-backed grant, or purchasing their own with no large upfront cost.
Easy Ways To Reduce Your Energy Bills
There’s many ways you can save energy by changing your habits at home. These include:
- Turning your thermostat down
- Minimising drafts where heat can escape
- Using appliances on ‘eco’ mode
- Unplugging devices that aren’t in use
Winter is usually the time where we have higher energy bills. This is because of turning our heating on, cooking more hot meals, or simply the fact that we’re spending more time indoors. You can find out how to save money this winter in our winter money-saving hacks blog.
Why Is My Energy Bill So High?
There’s a number of reasons why your energy bill may be above average. These range from the devices you have at home, your home’s EPC rating, and how many people live in your property.
Older or poorly insulated homes lose heat faster, requiring more energy for heating. Similarly, older appliances use more electricity than newer, models, adding to your overall bill. Taking steps like upgrading insulation, monitoring energy usage, and switching to more efficient appliances can help mitigate some of these costs.
However, upgrading your appliances and your home can be costly. That’s why we support households access government-backed home energy grants, that provide upgrades to make UK homes cheaper and easier to heat. These grants provide measures completely free of charge to eligible households, including solar panels, insulation, and a heat pump. These measures save the average UK home £400 a year off their energy bills.
You can check if you qualify in under a minute by clicking the button below.
