Everything you need to know about Energy Bills

With many homeowners still feeling the impact from the cost of living crisis, understanding your energy bills has never been more crucial. Energy bills can significantly impact your monthly budget, and being informed can help you make smarter financial decisions. In this post, we’ll delve into the average energy bill in the UK, how to check the average for a specific property, why energy-efficient homes save you money, and practical tips on making your home more energy-efficient. We’ll also address when we might see a decline in energy bills.

What Are the Average Energy Bills in the UK?

According to Rightmove’s analysis of properties that have recently been listed for sale and to rent in August 2024, the average monthly energy bill for a 3-bed semi-detached house with energy efficiency rating D is approximately £176 per month, or £2,120 per year. From this amount, approximately £930 will be towards gas, whilst about £1,190 will go towards electricity. 

The greener a home is, the lower the energy bill will be, however, this figure can vary widely based on several factors. These include the size of your home, the number of occupants, and your energy usage habits. For instance, larger households or homes with older heating systems tend to see higher bills.

Breaking Down Your Energy Bill

To understand your bill better, it’s helpful to break down the components:

1. Electricity Costs: Factors such as usage, peak times, and tariff type can influence this cost.
2. Gas Costs: Like electricity, prices can fluctuate based on usage and market conditions.
3. Standing Charges: Most suppliers charge a daily fee regardless of your usage, which contributes to your overall bill. This is important to factor in when comparing different energy suppliers.

How to Check the Average Energy Bill for a Property

If you’re considering buying or renting a property, checking its average energy bill is crucial. Here are some effective ways to do this:

1. Ask the Seller or Landlord: They should be able to provide you with previous bills or an estimate of average costs. This is often the quickest way to get an idea of what to expect.
2. Energy Performance Certificate (EPC): This legally required document for selling or renting properties provides insight into the energy efficiency of a home, including estimated energy costs. Homes with higher EPC ratings generally have lower running costs.
3. Online Energy Cost Calculators: Several websites offer tools where you can input property details—like size, age, and location—to estimate potential energy bills. This can be particularly useful if you’re comparing multiple properties.
4. Local Authority Resources: Some local councils provide average energy cost data for different areas, which can help you gauge what to expect based on the neighborhood.

Why Do Homes with Higher EPC Ratings Have Lower Average Energy Bills?

Homes with higher Energy Performance Certificate (EPC) ratings are generally more energy-efficient. This means they require less energy for heating, cooling, and powering appliances.

Key Factors Contributing to EPC Ratings

1. Insulation: Better-insulated homes retain heat more effectively, which means you spend less on heating during the colder months.
2. Energy-Efficient Windows: Double or triple glazing reduces heat loss, making your home more comfortable and reducing reliance on heating systems.
3. Modern Heating Systems: Newer boilers and heating systems are often more efficient, using less energy to heat your home.
4. Renewable Energy Sources: Homes equipped with solar panels or other renewable energy systems can generate their own electricity, further lowering energy bills.

How to Save Money on Energy Bills

Saving on energy bills doesn’t have to be complicated. Here are some practical tips to help you keep costs down:

1. Switch Suppliers: Regularly compare energy tariffs to find a better deal. Websites like Uswitch can help you find the most cost-effective options tailored to your needs.
2. Use Energy Wisely: Be mindful of your energy usage. Turn off lights when not in use, unplug devices that aren’t in use, and consider using energy-efficient appliances, which can consume less power overall.
3. Upgrade Your Boiler: If your boiler is over ten years old, consider upgrading to a modern, energy-efficient model. This can significantly cut down your heating costs.
4. Consider Time-of-Use Tariffs: These tariffs can offer lower rates during off-peak hours. If your routine allows, shifting energy-intensive tasks, like running the washing machine, to these times can save you money.
5. Regular Maintenance: Ensure that your heating system is serviced regularly. A well-maintained system runs more efficiently and can help identify potential issues before they become costly repairs.

How to Make Your Home More Energy Efficient

Making your home more energy-efficient not only helps reduce bills but also contributes to a greener environment. Here are some steps to consider:

1. Improve Insulation: Insulating your walls, roof, and floors can significantly reduce heat loss. Consider using materials like fiberglass or foam board, and don’t forget to insulate your attic!
2. Install Double-Glazing: Upgrading to energy-efficient windows can reduce heat loss significantly and improve your home’s comfort.
3. Invest in Smart Thermostats: These devices allow you to control your heating remotely and set schedules, ensuring your heating is only on when you need it.
4. Seal Gaps and Cracks: Small gaps around windows, doors, and even electrical outlets can let in cold air and drive up heating costs. Use weatherstripping or caulk to seal these leaks.
5. Use LED Lighting: Switching from traditional bulbs to LED lighting can significantly reduce your electricity usage, as LEDs use up to 80% less energy.
6. Install Solar Panels: While this can be a significant upfront cost, solar panels can drastically reduce your energy bills and may even allow you to sell surplus energy back to the grid.

For further information, take a look at one of our previous blog posts about the best ways to insulate your home throughout winter – https://you-convey.co.uk/the-best-ways-to-insulate-your-home-this-winter/ 

When Will Energy Bills Come Down?

Predicting when energy bills will decrease is challenging, as it depends on various factors, including market conditions, global energy prices, and government policies. However, many experts believe that with increasing investments in renewable energy and improvements in energy efficiency, we might see stabilization or gradual decreases in energy bills over time.

Potential Factors Affecting Future Energy Prices

1. Government Policies: Initiatives aimed at promoting renewable energy can affect energy prices. If more households adopt renewable solutions, overall demand from traditional sources may decrease, potentially lowering prices.
2. Market Trends: Fluctuations in global energy markets, particularly oil and gas prices, can impact domestic energy costs. As we move towards more sustainable energy sources, the reliance on fossil fuels may diminish, stabilizing prices.
3. Technological Advancements: Innovations in energy storage and efficiency can also play a role. As technology improves, the cost of energy generation from renewable sources may continue to decrease.

Conclusion

Understanding the average energy bill in the UK and knowing how to manage your energy consumption is vital in today’s economic climate. By checking property energy performance, implementing energy-saving measures, and staying informed, you can take control of your energy costs.

If you’re considering buying or selling a property, remember that a more energy-efficient home can be a significant selling point and can lead to lower bills for future homeowners. Stay proactive and make your home a comfortable, cost-effective haven!

By taking steps towards greater energy efficiency, not only can you save money, but you’ll also contribute to a more sustainable future for everyone.