What Is The Average Electric Bill in The UK [2024 Update]

As electricity bills in the UK in 2024 are much higher than in previous years, the concept of average electricity bills has become distorted. More and more Britons consider electricity bills to be a high-profile part of the cost of living, so paying attention to information about average electricity bills is fundamental to Briton's desire to reduce their electricity bills.

In this article, we mention the average electricity bill in the UK, the factors that affect it, and how to reduce it. Also, we highly recommend Jackery Solar Generator, the portable solar power solution, to charge your household appliances with unlimited solar energy to save your electric bills effectively.

Is Electricity Expensive in The UK?

Energy prices rose further in late 2021 and early 2022 and soared in early 2022. Energy prices remained volatile until 2024. During this period, wholesale electricity prices in the UK, Europe and other regions hit new highs and have not yet recovered to their previous levels.

The surge in energy prices caused the average electricity bill in the UK to rise from £764 in 2021 to nearly £2,000 in 2022. Therefore, the impact of rising electricity bills on consumers is significant.

(Data Source: Ofgem and ICIS)

The above chart, taken from Ofgem's wholesale market indicators, shows the volatility of electricity prices over the past few years. Although electricity prices have fallen in 2023 and volatility has decreased, they are still about double the electricity prices at the beginning of 2021.

According to a recent survey, almost half of British adults are trying to reduce electricity consumption at home due to rising living costs. In addition, 38% of adults find it difficult to afford high electricity bills.

Why are electricity prices in the UK rising so fast?

Factors such as limited natural gas reserves and global wholesale energy market fluctuations have affected the UK's energy and electricity prices. Among them, the small reserves of natural gas have seriously affected the cost of power generation in the UK.

In addition, infrastructure investment, restrictions on environmental regulations, and currency fluctuations that affect the cost of imported energy have also led to an overall increase in prices in the UK energy market.

What's the Average Electric Bill in The UK?

Understanding the average electricity bill for a UK household is essential to effectively managing electricity costs. Electricity usage can vary between UK households based on various factors, including appliance usage, heating and cooling needs, energy-saving practices, and lifestyle habits.

The average electricity bill is based on Ofgem's definition of a "typical" UK household (2-3 people). According to Ofgem's statistics, this typical household consumes 2,700 kWh of electricity per year or 225 kWh monthly. According to statistics, the average annual electricity bill in the UK is £964.80. The average monthly electricity bill is £80.40 in the UK. (The above data is based on the household also using gas rather than just electricity)

Of course, different payment methods will also affect the average electricity bill. Below is the average electricity bill in the UK for two different payment methods (Direct Debit and Pay on Receipt).

The data in the following two tables is based on the price cap rates and typical customer usage in July 2024. The rates and standing charges are averages and will vary by region, payment method and meter type.

How Is The Electric Bill Calculated in The UK? 

How are electricity bills calculated in the UK? Electricity bills in the UK usually comprise two parts: a unit rate and a standing charge.

Unit Rate

The unit rate in the average electricity bill is the charge for each unit of electricity consumed by a home or business, and it can be standing or variable. Variable unit rates are usually higher during peak hours (when everyone uses it) and lower late at night (when few people use it).

Standing Charge

The standing charge in the average electricity bill is a daily or monthly standing fee that electricity suppliers charge consumers for the maintenance and upkeep of the electricity supply infrastructure, regardless of how much electricity is consumed.

From July 2024 to September 2024, the default electricity tariff in the UK (the Standard Variable Tariff or SVT) will cap the average electricity charge for customers at 22.36 pence per kilowatt-hour (kWh) and a daily standing charge of 60.12 pence. However, the average electricity bill's unit rate and standing charge may fluctuate due to changes in wholesale energy prices, government policies and other factors.

London has the most expensive average electricity bill in 2024, with an average of 25.69 pence per kWh. Meanwhile, electricity is cheapest in the North, with an average of 23.19 pence per kWh.

Here is a comparison of electricity bills in different parts of the UK as of September 2024:

(Data Source: Ofgem and ICIS)

Energy Price Caps in the UK

Price caps were first introduced in 2019 by the UK energy regulator Ofgem. Energy price caps in the UK restrict the maximum amount an energy company can charge for each unit of gas or energy consumed. Energy price caps are generally reviewed every three months.  

Note that energy price caps only apply in England, Scotland and Wales. The Utilities Regulator regulates energy suppliers in Northern Ireland and sets price caps.

Many customers are reluctant to change energy suppliers, but some companies keep increasing prices. Energy price caps in the UK have helped mainly customers avoid loyalty penalties.

Energy price caps do not apply if:

• You are on a fixed-term energy tariff, an electricity tariff with a fixed end date and an agreed fixed unit price.
• You are on a specific type of tariff, such as some green tariffs and special time-of-use tariffs.

Factors Affect The Average Electric Bill in The UK

Why are electricity prices so high in the UK? The UK is vulnerable to the global energy market because the country relies on energy imports.

In addition, electricity bills are also affected by factors such as the amount of electricity consumed, seasonal variations and government policies. Factors that affect the average electric bill in the UK include:

Factor 1: Electricity Consumption

Of course, the main factor that affects your electricity bill is how much electricity you use, which depends on the number of people living in your home, seasonal differences, the types of appliances you have and how often you use them.

Number of People Living in Your Home

The more people living in your home, the more electricity you consume. Most electricity consumption occurs on weekends, usually when most people are at home. Generally, a family of five is more likely to have higher electricity bills than one or two.

Seasonal Differences

When temperatures soar or drop, your cooling or heating equipment must run at maximum capacity for longer, significantly increasing your electricity consumption. Winter is usually the period when the average electricity bill is the highest. Because you use the heating at home for longer, your electricity consumption may also increase.

Factor 2: Energy Price Caps

The average electricity bill is affected by changes in the energy price cap in the UK. If the price cap is raised, then the average cost of electricity will rise. When the price cap is lowered, the average monthly electricity bill in the UK will also fall.

It is important to note that the energy price cap only applies to the supplier's standard variable electricity price. The price charged by the supplier is below the energy price cap. Fixed-rate electricity prices are set for the duration of the contract (usually 12 months) and are not subject to the price cap.

Factor 3: Decline in Renewable Energy Generation

The UK has to use more coal and gas to produce enough electricity due to weaker winds, which has led to higher electricity prices. In addition, some nuclear power plants in the UK have begun to shut down.

Factor 4: Government Regulations

The energy policies and regulations set by the UK government can significantly affect energy prices. For example, the UK government's £15 billion support plan will provide households with a £400 electricity subsidy for six months starting in October.

How to Reduce Your Electric Bill?

Lowering your electricity bill doesn't mean you have to sacrifice your home's comfort. UK residents can use practical and intelligent strategies to control electricity costs and contribute to a more sustainable home economy. Here are some simple tips to help you reduce your electricity bill without compromising comfort.

Reduce Your Electricity Consumption

The most important thing to reduce your electricity bill is to use less electricity to some extent. Here are some simple tips to help you save electricity and use less electricity at home.

1. Unplug electrical appliances or electronic devices when not in use.
2. Install energy-saving lighting instead of traditional bulbs.
3. It is recommended that the length of showers be reduced and energy-saving hot water systems (such as solar or heat pumps) be chosen.
4. Try washing clothes in cold water using natural methods instead of electric dryers. (Unless your clothes are filthy, it is best to choose a temperature of 30 degrees Celsius or lower.)
5. Limit the use of heating and air conditioning when needed. In winter, the temperature should be between 18 and 21 degrees Celsius. Electricity consumption will increase by 10% for every degree above this temperature. In summer, try to use low-power fans instead of air conditioning.
6. Regular repair and maintenance of your appliances can make them work more efficiently and reduce electricity consumption.

Consider Solar Energy

Installing and using solar energy to replace part of the power grid can help reduce your electricity bill. During the day, a solar energy system will generate real-time electricity to power household appliances, lights, or technological devices.

Excess electricity can be stored in solar panels for use at night. Today, almost any household appliance can be powered by solar energy. Using solar-powered electronic devices can also reduce the maintenance and replacement costs of such electronic devices.

During the day, a solar system will generate real-time electricity to power home appliances, lights or technology. Excess electricity can be stored in the solar panels for use at night.

Solar generators, like Jackery Solar Generator, can be an environmentally friendly energy source to reduce energy consumption and lower household electricity bills. Solar investments in electricity can benefit from various incentives, rebates, and feed-in tariffs, increasing home value while saving energy

Overall, solar energy systems can reduce your dependence on the grid, save money, and provide long-term returns.

Jackery Solar Generators for Reducing Electric Bills

Implementing a solar energy system in your residence provides numerous advantages. Jackery is a renowned manufacturer in the solar industry, focusing on producing top-notch solar equipment like solar generators, solar panels, and portable power stations.

Jackery Solar Generators offer a reliable and uninterrupted power supply for your household and outdoor appliances to reduce your electric bills.  

In conjunction with Jackery Solar Panels, a Portable Power Station facilitates the efficient conversion and storage of more sunlight for future use. By having numerous output ports, you can charge multiple appliances at the same time.

Jackery Solar Generator 2000 Plus

Jackery has unveiled the Solar Generator 2000 Plus, a cutting-edge portable power solution with exceptional performance. Thanks to its substantial capacity and formidable power output, this device can sustain the operation of standard domestic appliances for several weeks and fulfil all the power needs associated with outdoor adventure or professional activity.

The Jackery Solar Generator 2000 Plus allows adding extra battery packs, which boosts the capacity from 2 kWh to a remarkable 12 kWh, thus enhancing the solar charging capabilities significantly. With the ability to be expanded to 3000W, this solar product offers a 30% higher rated power than other 2 kWh solar goods available in the market. Practically all essential household equipment is energised.

The Explorer 2000 Plus is an industry's pioneering add-on battery pack that can be recharged using solar panels. This feature enhances versatility, improves charging efficiency, and reduces charging time. The LiFePO4 battery, with its sophisticated technology, guarantees a lifespan of 10 years, even with daily usage limited to once per day. Jackery Solar Panels generate more energy over their lifespan due to their exceptional solar conversion efficiency, reaching up to 25%.

Jackery Solar Generator 1000 v2

The Jackery Solar Generator 1000 v2 is an upgraded version which is smaller, lighter, and even more robust. It is the combination of Explorer 1000 v2 with SolarSaga 100W solar panel.       

The Explorer 1000 v2 Portable Power Station has an impressive 1500W power output, over 50% more than earlier models, allowing for easy operation of high-demand appliances such as kettles, refrigerators and portable air conditioners.

Equipped with USB-A/C connections and capacity for up to 100W dual PD charging, this gadget can simultaneously charge many devices, making it the ideal companion for all your power requirements.

The Emergency Charge Mode, activated via the application, enables the Explorer 1000 v2 Portable Power Station to achieve complete charging in under one hour, providing essential power backup during battery depletion. Furthermore, the ability to charge from 0% to 100% within a two-hour timeframe utilising an AC wall outlet prolongs the battery's lifespan.

Support Measures to Help with Electric Bills 

Are there any support measures in the UK to help people struggling to pay their high electricity bills? In other words, can residents in the UK seek help if they struggle to pay their electricity bills? Of course, the government and electricity suppliers have some strategies to help people struggling to pay their electricity bills.

Here are some of the assistance for electricity bills in the UK. For more information, please visit GOV.UK)

Sign Up for the Priority Service Register

You can get extra help from your electricity supplier by signing up for the Priority Service Register. If you are already signed up for the Priority Service Register, contact your electricity supplier to see what help they can provide.

Warm Home Discount Scheme

The Winter Fuel Benefit is a one-off annual payment to help with winter heating costs. If you are eligible for the Winter Fuel Benefit, you will receive a letter in October or November each year telling you how much you will receive.

You will then receive the benefit automatically, usually in November or December. If you are under 80, you will receive £200. If you are over 80, you will receive £300.

Winter Fuel Benefit

The Cold Weather Payment is a one-time payment to help with the extra heating costs when the weather is freezing. Generally, the Cold Weather Payment is paid when the temperature in your area drops below a certain level for a certain number of days. You will receive the Cold Weather Payment between November 1 and March 31.

Will Electric Bills in The UK Come Down in The Future?

Will electricity prices in the UK fall in the future? It is a question that many people and households in the UK are concerned about. In recent years, factors such as limited natural gas reserves, strong demand for LNG in Asia, low wind power generation and rising carbon prices have led to an increase in the cost of electricity in the UK.

The Office for National Statistics reported that electricity prices rose by an average of 5.5% annually between 2000 and 2020. This trend is expected to continue or accelerate as demand increases with the electrification of the UK's heating and transport systems. In the long term, Cornwall Insight predicts that electricity prices will remain relatively high until the late 2030s.

Overall, the UK's vigorous renewable energy development will stabilise electricity prices over time. In addition, this transition is expected to reduce electricity costs to a large extent, thereby benefiting consumers and contributing to global efforts to combat climate change.

The UK government aims to cut energy demand by 15% by 2030, which could save households money as any escalation in global conflict or trade disputes could lead to price volatility.

Average Electric Bill in The UK FAQs

The following are the frequently asked questions about the average electric bill in the UK.

1. Which is more expensive, gas or electricity,in the UK?

Energy prices have been rising in recent years. Generally speaking, gas is cheaper than electricity in the UK (on a cost per kWh basis). However,  how much you pay for gas or electricity depends on the unit rate, lifestyle, and heating needs.        

2. Why is renewable electricity so expensive in the UK?

Renewable energy generally generates electricity when favourable weather conditions result in erratic supply levels that may not always align with demand, affecting market prices.

In general, renewable electricity remains expensive on wholesale markets because of the intermittency inherent in renewable energy sources such as wind and solar.

3. What are the benefits of adopting energy-saving measures?

Adopting energy-saving measures in your daily life can bring a variety of benefits. By being mindful of your energy usage and developing energy-saving habits, you can positively impact the environment and your finances. Implementing everyday energy conservation practices can reduce electricity expenses and promote a more sustainable future.   

Final Thoughts

Electricity costs in the UK have increased in recent years. So, knowing the average electric cost is essential to living in the UK as it is an integral part of the cost of living.

Knowing the average electric bill in the UK allows users to make better decisions about their power usage, helps households plan for living costs, and provides insight into the country's electricity market dynamics and trends.