How much is the average energy bill UK 2026?

Under the Energy Price Cap (April 2025), typical annual bills are around £1,600-1,900 for a medium household. Actual costs depend on your usage, tariff, and property size. Bills have fallen from 2023 peaks but remain above historical levels.

How is my energy bill calculated?

Your bill = (daily standing charge × days) + (unit rate × kWh used). Standing charges are fixed daily fees; unit rates are per kWh consumed. Both vary by region and tariff. Smart meters give accurate readings; otherwise estimates are used.

What is a kWh and how much does one cost?

A kWh (kilowatt hour) is a unit of energy — running a 1kW appliance for 1 hour uses 1kWh. Typical 2025 rates are around 22-25p per kWh for electricity and 6-7p per kWh for gas, varying by tariff and region.

Why is my energy bill so high?

Common reasons: poor insulation, old appliances, inefficient heating, leaving things on standby, high tariff rates, or estimated readings being too high. Check your actual meter readings and compare tariffs to find savings.

Energy Bill Calculator UK — Estimate Your Gas & Electric Costs | PocketWise

Energy Bill Calculator UK — Estimate Your Gas & Electric Costs

Calculate your energy bills based on usage. Average costs, unit rates, standing charges, and tips to estimate your annual gas and electricity spend.

By PocketWise · 23 March 2026 · 4 min read

Understanding how your energy bill is calculated helps you budget and find savings. Here’s how to estimate your costs.

Energy Price Cap Rates

Current Cap (April 2025)

Component	Electricity	Gas
Unit rate	~24.5p/kWh	~6.24p/kWh
Standing charge	~60p/day	~32p/day

*Rates shown are typical; actual rates vary by region and payment method.

Typical Annual Bills (Price Cap)

Household Size	Annual Bill
Small (1-2 bed flat)	£1,200-1,400
Medium (3-bed semi)	£1,600-1,900
Large (4-5 bed)	£2,200-2,800

How Bills Are Calculated

The Formula

Total Bill = Standing Charges + Usage Charges

Standing Charges = Daily rate × Number of days
Usage Charges = Unit rate × kWh consumed

Example Calculation (Monthly)

Component	Calculation	Cost
Electricity
Standing charge	£0.60 × 30 days	£18.00
Usage	242 kWh × £0.245	£59.29
Electricity total		£77.29
Gas
Standing charge	£0.32 × 30 days	£9.60
Usage	833 kWh × £0.0624	£51.98
Gas total		£61.58
Monthly total		£138.87
Annual total		~£1,666

Average Usage by Property

Electricity Usage (Annual kWh)

Property Type	Low	Medium	High
1-bed flat	1,500	2,000	2,500
2-bed flat	1,800	2,400	3,000
2-bed house	2,100	2,700	3,400
3-bed house	2,400	2,900	3,900
4-bed house	2,800	3,800	5,100
5+ bed house	3,400	4,600	6,100

Gas Usage (Annual kWh)

Property Type	Low	Medium	High
1-bed flat	6,000	8,000	10,000
2-bed flat	7,000	10,000	13,000
2-bed house	8,000	11,000	15,000
3-bed house	9,000	12,000	17,000
4-bed house	11,000	15,000	21,000
5+ bed house	14,000	19,000	26,000

Estimate Your Annual Bill

Step-by-Step Calculator

Step	Your Input
1. Annual electricity (kWh)	_______
2. × unit rate (£0.245)	= £_______
3. + standing charge (365 × £0.60)	+ £219
Electricity total	= £_______
4. Annual gas (kWh)	_______
5. × unit rate (£0.0624)	= £_______
6. + standing charge (365 × £0.32)	+ £117
Gas total	= £_______
Annual total	= £_______

Quick Estimate Table

Annual Usage	Electric (kWh)	Gas (kWh)	Annual Bill
Low	1,800	7,500	£1,150
Medium-low	2,400	10,000	£1,400
Medium	2,900	12,000	£1,650
Medium-high	3,500	15,000	£2,000
High	4,300	18,000	£2,400
Very high	5,500	23,000	£3,050

Appliance Running Costs

Common Appliances

Appliance	Power (Watts)	Hours/Day	kWh/Day	Weekly Cost
LED TV	50W	4	0.2	£0.34
Laptop	50W	8	0.4	£0.69
Desktop PC	200W	8	1.6	£2.74
Games console	150W	3	0.45	£0.77
Fridge-freezer	40W	24	0.96	£1.65
Washing machine	500W	1 (6×/wk)	N/A	£0.74
Tumble dryer	3000W	1 (3×/wk)	N/A	£2.21
Dishwasher	1800W	1	1.8	£3.09
Kettle	3000W	0.25	0.75	£1.29
Electric oven	2000W	1	2.0	£3.43
Microwave	1000W	0.3	0.3	£0.51
Electric shower	9000W	0.17	1.5	£2.57
Hair dryer	2000W	0.17	0.34	£0.58

Heating Costs (Electric)

Heater Type	Power	Cost Per Hour
Oil-filled radiator	1.5kW	£0.37
Fan heater	2kW	£0.49
Halogen heater	1.2kW	£0.29
Panel heater	1kW	£0.25
Storage heater (charging)	2kW	£0.49
Electric blanket	0.1kW	£0.02

Seasonal Variation

Typical Monthly Usage Pattern

Month	Electric (kWh)	Gas (kWh)	Combined Cost
January	280	1,800	£185
February	260	1,600	£170
March	240	1,300	£150
April	220	900	£115
May	210	500	£90
June	200	300	£75
July	200	300	£75
August	200	300	£75
September	220	500	£90
October	240	1,000	£130
November	260	1,400	£160
December	280	1,800	£185
Annual	2,810	11,700	~£1,500

Compare Tariffs

Tariff Types

Tariff Type	Features
Standard variable	Default, price cap protected
Fixed rate	Locked price for 1-2 years
Green/renewable	From renewable sources
Economy 7/10	Cheaper night rates
Prepayment	Pay as you go

When to Fix

Situation	Recommendation
Prices expected to rise	Fix now
Prices expected to fall	Stay on variable
Want certainty	Fix
Low usage	May not matter much

Ways to Reduce Bills

Quick Wins

Action	Typical Saving
Switch supplier/tariff	£100-300/year
Turn down thermostat 1°C	£80-100/year
Switch off standby	£55/year
LED bulbs	£40/year
Efficient shower head	£70/year (water & energy)
Draught proofing	£30-50/year

Bigger Investments

Action	Cost	Annual Saving	Payback
Loft insulation	£300-500	£200+	2-3 years
Cavity wall insulation	£500-1,500	£150-300	3-5 years
Smart thermostat	£150-250	£75-150	2-3 years
Solar panels	£5,000-8,000	£300-500	10-15 years
Heat pump	£10,000-15,000	£200-500	20-30+ years

Behavioural Changes

Change	Impact
Shorter showers	Significant
Full washing machine loads	Moderate
Air dry clothes	£50+/year
Cook efficiently	Moderate
Layer up instead of heating	Significant

Standing Charges

Why We Pay Them

Purpose	Details
Network maintenance	Pipes, wires, infrastructure
Meter costs	Reading, maintenance
Policy costs	Some green levies
Fixed regardless of usage	Can’t avoid

Current Standing Charges

Fuel	Daily Charge	Annual Total
Electricity	~60p	~£219
Gas	~32p	~£117
Total	~92p	~£336

Impact on Low Users

Situation	Impact
Holiday home	High proportion in standing charges
Very efficient home	Still pay full standing charge
Electric-only (no gas)	Save £117/year gas standing charge

Summary

Household	Typical Annual Bill
1-2 bed flat	£1,200-1,400
3-bed house	£1,600-1,900
Large house	£2,200-2,800

Cost Component	Typical Rate
Electricity unit	24-25p/kWh
Gas unit	6-7p/kWh
Electricity standing	60p/day
Gas standing	32p/day