Why is my energy bill so high?

An unexpectedly high energy bill is something we all want to avoid. There are many reasons why your energy bill may be higher than expected, such as higher energy consumption, insulation issues, or problems with your billing.

We’ve summarised why your bill might be higher than usual and what you can do about it.

Summary

There’s a few reasons why your energy bill might be higher than you expected. These include:

• Increased energy usage
• Poor insulation or draughts
• Changes in tariffs or rates
• Incorrect estimated readings
• A faulty meter

You can take the following steps to reduce your energy bill:

• Implement an energy-efficient lifestyle
• Insulate your house
• Install a smart meter
• Install solar panels
• Switch tariff or energy providers

What’s the average energy bill in the UK?

It’s a little more complicated than one single number. Energy usage correlates with the size of the property, how many of occupants, and of course, the price on unit rates and standing charges. This is also affected by Ofgem’s price cap, which states that the annual energy bill for a typical UK household using both gas and electricity, and paying by Direct Debit, is currently set at £1,849 by Ofgem.

Here are the average annual energy usage values of these different categories of households, according to Ofgem’s guide on average gas and electricity usage:

Energy usage, housing, and the number of people

Average annual gas use in kWh

Average annual electricity use in kWh

Average annual electricity use (multirate, such as Economy 7) in kWh

Low-usage flat or one-bedroom house with 1-2 people

7,500

1,800

2,200

Medium-usage two- or three-bedroom house with 2-3 people

11,500

2,700

3,900

High-usage house with four or more bedrooms and 4-5 people

17,000

4,100

6,700

With a better understanding of these averages, it’s much easier to clarify how much energy you use relative to similar households.

If you’ve confirmed that your energy bill is indeed higher than the average, or might simply be unexpectedly high due to past usage patterns, it’s important to identify why this might be the case so you can take the necessary steps to lower your energy bill.

Reasons your energy bill might be higher than expected

If you’re wondering, “why is my electric bill so high?” or “why is my gas bill so high?”, there are many reasons why your energy bill might increase. Here are the five key reasons that you should consider when trying to identify what could contribute to your higher bill.

1. Increased energy usage

An increase in your energy bill may be due to increased energy usage in your home. There are numerous factors that could cause this, including:

Changing seasons

Energy usage is strongly influenced by increasingly extreme seasonal weather patterns. In the winter, people tend to spend more time in their homes, often using the heating. Whereas in warmer months, you might be running things like fans. Your bills will fluctuate in line with seasonal usage.

Working from home

Depending on your industry, working from home could cause a noticeable increase in your household energy usage. Even if you’re a knowledge worker who uses an energy-efficient laptop computer, various energy-intensive activities, such as boiling a kettle or using an air conditioner or heater to keep your workspace comfortable, can add up.

Half-term school holidays

Sounds like an obvious one, but if you have children who are home for the holidays or school breaks, this can cause spikes in your energy usage. Once again, device usage can contribute to your energy usage, whether it’s a microwave, stove, TV, or other household appliances.

Using high-energy appliances

Whether you’ve recently purchased a high-energy device like a washing machine, tumble dryer, dishwasher, or are simply using these devices more often, high-energy devices are a major contributor to energy usage in the home.

According to The Energy Saving Trust article What appliances use the most electricity?, the following devices are found to be the main sources of household energy consumption:

• Washing machines, dishwashers, and tumble dryers account for 14% of household energy usage.
• Fridges and freezers account for 13% of household energy usage.
• TVs, laptops, and games consoles account for 6% of household energy usage.
• Lighting accounts for 5% of total household energy usage.
• Ovens, microwaves, and kettles account for 4% of household energy usage.

2. Changes in tariffs or rates

If you are wondering, “Why are gas and electricity prices rising?”, the primary cause of rising energy tariffs or rates is the wholesale price of gas and electricity.

Unfortunately, energy prices have become increasingly unstable in recent years for various reasons, including volatility in international markets, extreme weather conditions, increasing demand, and supply chain issues. However, this has affected the UK more than many other countries due to the UK energy system’s reliance on gas.

The UK Government article Rising energy bills: what you need to know confirmed that rising gas prices are due to price increases in the global market. These price increases have numerous causes, such as the disconnection of a Russian gas pipeline providing gas to Europe, which the UK gas network is connected to, none of which the UK government can influence.

3. Incorrect estimated readings

When an energy provider doesn’t have an accurate meter reading, they will calculate an estimate of your energy usage based on your meter’s annual usage. Depending on the energy provider, other factors, such as seasonal usage and the number of people living in your home, may be factored into this estimated reading.

However, due to your energy consumption being estimated, your bill may end up being higher than it should be, especially if you have recently taken steps to lower your energy consumption that haven’t yet affected your annual usage, such as having solar panels installed or improving the insulation of your home.    

4. Faulty meter

Meter faults are rare but can lead to incorrect electricity and gas readings, resulting in higher bills. If you've ruled out other issues and received a bigger bill, a faulty meter might be the cause. You must understand that it is very unlikely that your meter is faulty, as they statistically never turn faulty.

What can I do if my energy bill is not correct?

It’s possible that you have been sent an estimated usage that’s too high, are being charged for the wrong meter, that your meter isn’t correctly tracking your usage, or your supplier has incorrectly billed you. If you think any of this must have happened, you can get in touch so we can take a closer look and help.

How to reduce high energy bills

If your energy bills are high due to increased consumption or energy prices that are out of your control, there are several actions you can take to reduce your energy consumption.

1. Implement energy-saving habits

There are numerous lifestyle changes that you can make to improve your energy savings if you’ve noticed your power bill is too high. These changes include:

• Lowering the temperature on your thermostat
• Completely turning off devices that are in standby mode
• Showering instead of bathing, or taking shorter showers
• Switching to energy-efficient lighting
• Turning off the lights and any other devices when you’re not using them

2. Insulate your home

If your home isn’t properly insulated, you’ll be spending more than you need to on heating and cooling your home during the coldest and hottest months of the year. You can improve the insulation of your house by:

• Insulating your floor, walls, and loft
• Sealing gaps between doors and floorboards and around windows
• Adding thick curtains or blinds to your windows
• Insulating your pipes and hot water geyser
• Double-glazing your windows

3. Install a smart meter

A smart meter is key to helping you track your energy usage so you can identify when you are using the most energy. This will help you better understand which activities have the highest energy costs so you can take steps to improve your energy efficiency.

A smart meter will also send meter readings to your supplier automatically, saving you time that you would usually spend on manually submitting meter readings while also ensuring more accurate billing.

4. Install solar panels

A great way to reduce your energy bills is by installing solar panels. There are various factors that could affect your decision about getting solar panels, but they are a great way to lower your monthly energy costs while also taking advantage of many other benefits.

The benefits that you’ll gain from installing solar panels include:

• Reducing electricity bills over the long term
• Shielding you from fluctuations in the price of energy
• Reducing your dependence on the grid
• Producing green energy
• Improving the value of your property
• Selling excess energy back to the grid with the Smart Export Guarantee (SEG)

You can boost the benefits of solar panels by also installing battery storage. Battery storage will allow you to store excess energy captured by your solar panels for use through the night or on days when solar production isn’t at its best, such as rainy or overcast days. This will help you further reduce your energy bills.

If you are interested in getting solar panels but are looking for ways to reduce the cost, consider speaking to your energy supplier or investigating whether you qualify for government financial assistance programs such as Energy Company Obligation (ECO4), the Warm Homes: Social Housing Fund, or the Warm Homes: Local Grant support program.

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Find out how you can reduce your energy bill

We know many customers want to lower their bills. We offer three tariff options, and our team can also assist you with installing solar panels, solar panels with battery storage, or a heat pump, all of which can help you reduce your energy bill.

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