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Evening Standard
Evening Standard
World
Nuray Bulbul

What is the UK average gas and electric bill in 2023?

As of July 1, households will experience a significant decrease in their energy bills due to a lower price cap, which limits how much suppliers can charge consumers for each unit of energy they use.

The average household’s yearly gas and electricity bill will now cost £2,074, according to Ofgem.

Your energy provider charges you for each unit, or kilowatt hour (kWh) of gas or electricity you use, so the more you use, the more you pay.

The Government's Energy Price Guarantee, which has kept the average payment at £2,500 since October, will now end as a result.

What is the current average?

The average energy bill depends on house size. These are the following average costs according to British Gas:

One-bedroom house

For a one-bedroom house, the average annual cost of bills is £1.442.16, with an average monthly cost of £120.18.

Two-bedroom house

For a two-bedroom house, the average annual cost of bills is £2,073.69, with an average monthly cost of £172.81.

Three-bedroom house

For a three-bedroom house, the average annual cost of bills is £2,870.63, with an average monthly cost of £239.22.

These are based on customers with regular usage, paying by Direct Debit, and the July 2023 price cap rates.

Your bill is calculated using an energy unit called a kilowatt hour.

The average British household has 2.4 occupants and uses 2,900 kWh of electricity and 12,000 kWh of gas per year, according to Ofgem. In terms of monthly use, this equals 242 kWh of electricity and 1,000 kWh of gas.

This represents the typical consumption for a family of two to three people. Your bills will increase if you use more gas or electricity.

Depending on how much you use, your actual bill can be higher or lower than the average. Additionally, if you don't have a fixed rate, prices will change based on the price of gas, electricity, and your supplier.

How does the price cap affect this?

The energy regulator Ofgem establishes a maximum price that suppliers can charge customers per unit of gas and electricity, regardless of government action. It applies to households in England, Wales, and Scotland with variable or default rates.

The new price cap suggests the typical bill could fall to £2,000 a year this winter.

The electrical unit rate is 30p per kWh under the new cap, which goes into effect on Saturday and lasts for three months, with a standing charge of 53p per day. The standing charge is 29p per day, and the gas unit rate is 8p per kWh.

The estimates for an average household assume that a direct debit user uses 2,900 kWh of electricity and 12,00 kWh of gas annually.

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