Home energy bills are becoming more and more confusing. Homeowners and tenants are finding it increasingly difficult to navigate the fluctuating energy landscape. Industry-wide levies, the price of wholesale energy, and the type of tariff you are on can all impact your average energy bill cost. 

Misinformation helps energy suppliers bump up the cost of your energy bill. At Power Compare, we help energy consumers understand their bills and take steps towards reducing them with transparent information. Keep reading to discover whether your average energy bill costs are higher than others in the UK. 

The Average Energy Bill Cost in the UK  

In 2020, the average annual domestic energy bill in the UK was £1,287 a year. Of course, this number includes small, 1 bedroom flats and large, 5 bedroom family houses. It might not reflect your situation, which is why it is important to take a closer look at the statistics. 

• Small, 1 or 2 bedroom flats and houses – Households that used 8000kWhs of gas and 2000kWhs of electricity a year paid on average £66 a month, which is £795 a year.
• Medium, 3 bedroom houses – Households that used 12,500kWhs of gas and 3,100kWhs of electricity a year paid on average £97 a month, which is £1,163 a year. 
• Large, 4+ bedroom houses – Households that used 18,000kWhs of gas and 4,600kWhs of electricity a year paid on average £137 a month, which is £1,639 a year.

One thing is clear from the figures: electricity is much more expensive than gas. Electricity costs homeowners and tenants around 15p plus standing charges per unit, whereas 1 unit of gas costs around 4p. If you want to reduce your home energy bills, it is worth considering how you can lower your electric consumption. 

How to Save Money on Your Average Energy Bill Cost

Home energy bills can seem confusing. They can go up or down in price if you are not on a fixed tariff. We help energy consumers manage and reduce their average energy bill costs with actionable steps. There are lots of ways to reduce your home energy bills. 

• Compare home energy – The best way to reduce your energy bills is to make sure you are getting a good deal. The modern energy market is constantly changing, which makes it more important than ever to compare your home energy provider to others. Take control of your energy bill and compare your energy supplier and prices on our site. 
• Improve your home – A lot of homeowners that we speak to reduce their energy bills by insulating their homes. Insulation can make a world of difference in the winter months. If you have not invested in loft insulation or double glazed windows, it is time to start searching for a reliable home renovation company. 
• Know your rights – For tenants, home improvements can seem like a distant dream. It is important to remember that you have rights, regardless of whether you are renting your home. If your home does not meet industry-wide standards or the criteria for an Energy Performance Certificate (EPC), your landlord is legally obligated to improve the property. 
• Use less energy – Sometimes, the simplest solution is the best. When it comes to reducing your home energy consumption, there is a lot of simple steps you can take. 

How to Use Less Energy 

Using less energy is the ideal solution for people who want to tackle their energy bills without calling their suppliers. Homeowners and tenants can use more energy than they need without realising it. Here are a few easy tips and tricks to reduce your overall bill.

• Turn off your appliances – We recommend turning off all appliances at the socket when they are not in use. Appliances on standby might not seem like they consume much energy. Over time, standby appliances can add an unnecessary expense to your energy bill. 
• Install a new boiler – If your home has an old or defunct boiler, it could be costing you money. Old boilers need more time than modern alternatives to produce sufficient energy for your home, which means that you use more energy in the long run. 

• Install a smart thermostat – Smart thermostats are perfect for people who want to monitor their average energy bill costs. Smart thermostats allow homeowners to control their energy usage from their phones. You never have to worry about leaving the heating on all day again with this handy piece of energy-saving technology. 

Understanding Your Home Energy Bill

With the average energy bill cost fluctuating every month, more and more people want to better understand their energy consumption. At Power Compare, we exist to compare home energy and explain the confusing jargon that comes with your bill. Here are a few shortcuts that can help you better understand your bill. 

• Tariff name – Tells you what tariff you are on. If you need to compare home energy prices and switch suppliers, you will need to know the exact name of your tariff. 
• Total kWh/This cost – Tells you how much electricity you use every year. KWh stands for kilowatt-hour, a unit of measurement for energy.
• Total units/This cost – Tells you how much gas you use every year. 
• Estimated usage over 12 months – Tells you how much gas and electricity you have used in the last year. It is important to remember that this section is an estimate. If you have not been with your supplier for a year, they will base their estimate on the amount of time that you have been with them.
• Electricity supply number – Tells you your unique Meter Point Administration Number (MPAN). 

Switch Your Energy Supplier 

The most effective way to reduce your home energy bills is to switch suppliers. Over time, the overall cost of your bill can creep up. It is important to shop around to ensure you are getting the best deal possible. The market is flooded with new energy suppliers who offer competitive deals to gain new customers. 

At Power Compare, we help homeowners and tenants find the best deals. If you are searching for an easy, hassle-free way to compare home energy, look no further. Type your details into our comparison site and find the best deal in a matter of minutes.