According to Ofgem, the UK average dual fuel bill is £1,131 a year, that’s £94.35 a month, which equates to nearly 4% of the average UK household budget.
If you live alone or there’s only two of you in a one or two bed flat, then chances are your bills are going to be lower. UK Power estimates gas at £33 a month and £34 for electric (source)
2021 gas and electricity price rises
Since the introduction of Ofgem’s energy price cap in January 2019, most suppliers have based energy prices on their default tariffs on the rate of the price cap.
Following an increase in the price cap level announced in February 2021, suppliers raised their prices for customers on default tariffs.
All of the ‘big six’ energy suppliers announced price rises this year, each implementing an average £96 annual increase for customers on standard variable and default tariffs. These price rises came into effect from 1 April 2021.
The average UK household spends £2,548 a month on household bills—according to the average (and unlikely!) household size of 2.4 people. However this figure averages all households (including those with no rent or mortgage expenses)— housing costs would be lower for those owning a home outright and higher for those with a mortgage or renting, as you can see in the table and chart below (in green)
All the above has been copied/pasted from the sources linked and are for some background to my post.
We have known for years that we are below average in our expenditure and even when we were working, our household budget was way less than what is quoted here.
I feel I have lost touch with today’s monetary reality as quite honesty I find these figures scary. A lot of the above wouldn’t relate to us (sunglasses, alcohol, holidays, mortgage, eating out, household appliances, gym fees and the like) but our council tax is £126 pm, broadband /line rental £20 pm plus calls and VAT, water £30 pm, fuel for the car about £50 pm depending how often we use it and where we go, and food around £140 a month.
We are on a fixed tariff for our gas and electricity until the end of September, so naturally I have been looking around for comparison tariffs in plenty of time instead of leaving it to the last minute.
As per the above, UK power estimates £33 pm for gas and £34 pm for electricity for 2 people living in a one or two bedroom flat. Our property is a two bedroom detached bungalow, so OK all on one floor, but our energy payment of £46 pm covers gas AND electricity. However, we do not have a dishwasher, electric shower, tumble dryer or TVs (on standby or not), though I do cook on electric, have an automatic washing machine and a microwave.
I’ve had a bit of a shock today as although I had intended to increase our monthly payment to £50, it would seem that energy prices have gone up considerably more than that and from what we had seen, we could expect to pay around an extra £100 a year. Ouch.
However, looking at the potential figures for a fixed tariff, it seems that it is not the cost of the energy that is knocking up prices, but the daily service charges. Years ago the energy companies scrapped the quarterly service charge and cunningly incorporated it in the price hike. In recent years, the service charge has been reintroduced on a daily basis, and it is this that has seen a large increase.
Our current electricity is 17.08 p per Kwh, with a daily service charge of 15.82 p.
Gas is 4.03 per Kwh, with a daily service charge of 14.64 p.
Three alternatives quote
electricity 18.39 p per Kwh, daily charge 23.77 p, gas 3.55 p per Kwh, daily charge 26.60 p ,
electricity 18.49 p per Kwh, daily charge 23.78 p, gas 3.26 p per Kwh, daily charge 26.60 p,
the above fixed for 2 years, and this one for one year
electricity 18.49 p per Kwh, daily charge 22.13 p, gas 3.26 per Kwh, daily charge 24.96 p.
So in all instances above the gas rate per Kwh has reduced, but daily charges are up by between 10p and 12p.
Electricity is up around 1.30 p or 1.40 p per Kwh, and the daily charge between 6p and 8p.
Regardless of how much energy we use, we can add an average of 18p per day to our bill, which is £1.26 a week or £65.70 a year. Our electricity is stable at an average of 3 Kwh a day, but obviously because we have gas heating, that will be much higher in the winter.
What annoys me is that we can control our usage, but have no say on the calendar.
Just a thought.