The energy crisis is set to continue well into next year and the energy price cap is set to increase again this October, which is going to leave millions of households across the country in financial turmoil.
With the energy crisis in full swing and set to continue well into next year, like many, you are probably trying to plan ahead and are wondering how much you can expect to pay for your electricity and gas bills.
Thankfully the energy price cap has offered some level of protection to UK households, but with it set to increase again this October it has many families across the country worried.
The energy price cap was first launched in 2019 and its purpose was to provide backstop protection from the government, calculated by Ofgem. The price cap limits the rates a supplier can charge for their default tariffs.
The energy price cap is reviewed and amended twice each year and the last price cap was introduced on the 1st of April 2022, which increased bills by 54%, impacting around 22 million people.
How Much Will Your Energy Bills Go Up in 2022?
The new energy price cap will be announced in August, but doesn’t take effect until October.
The average energy bill (on a standard tariff) is expected to increase by around 80% come October, which follows the 54% increase that came into effect in April 2022.
This means that the average gas and electricity bill in the UK will be a staggering £3,500 cost.
While these energy price caps are designed to protect households, many have rightly pointed out that it’s not adequate and will leave millions of households in fuel poverty.
In response, the government has launched the cost of living support package to help with spiralling living costs. All UK households will receive a £400 energy rebate from October 2022, while those on a low income, who are amore vulnerable to increasing prices are set to receive an additional £650 of support.
Energy Bill Calculator UK
To get a rough idea of how much you can expect your energy bills to go up this year, use our energy bills calculator/estimator below.
Our energy price cap calculator estimates how much you can expect your bills to increase in line with current predictions.
What Can You Do About Rising Energy Bills?
Traditionally, the main piece of advice has been to change your energy supplier to lock yourself into a cheaper or more competitive energy deal.
However, in light of the energy crisis many energy suppliers went bankrupt and closed operations.
The remaining energy suppliers have raised their energy prices in response to increasing wholesale prices, meaning better deals are next to impossible to find.
Some energy suppliers have started to offer the ability for their customers to fix their energy prices at a higher tariff cost. However nobody knows if this will payoff, since bills could continue to increase well into 2023.
Note: If you are finding it difficult to pay your energy bills or are already in energy debt, make sure you talk to your energy supplier, they can offer assistance.
Average Energy Bill UK
The average energy bill in the UK depends on a variety of different factors, including the type of property you live in, your current energy tariff, as well as the size of your household.
However being aware of the UK average energy bill can certainly be helpful in assessing your own personal situation.
Important update: the new energy price cap from October the 1st 2022 will increase the cost of electricity to 52p per kWh, an increase of more than 80%, therefore averages are not going to be very useful.
Average UK Electric Bill
According to UK energy regulator Ofgem, the average household of 2.4 people uses 2,900 kWh of electricity each year, at an average cost of 20p/kWh.
This means that the average electric bill in the UK is equal to £580 per year or £48.33 per month.
Average UK Gas Bill
In terms of the average gas bill, the average UK household uses 12,000kWh of gas every year at a cost of 7p/kWh.
This means that the average gas bill in the UK is equal to £840 per year or £70 per month.
Why Have Energy Bills Increased So Much in the UK?
There are many reasons for the skyrocketing price of energy in the UK and you may have noticed it’s a global issue impacting every country that relies on gas and oil imports.
Due to Russian Gas and Oil being cut from the normal supply, this has led to an international shortage and due to many countries now looking for alternative providers, this has led to a surge in demand and in turn prices.
Unfortunately, the UK is not in a position to rely entirely on renewables like wind power and so the only option is to ride the wave.
In response to the current energy crisis, the UK government recently published their Energy Security Strategy, which outlines how they intend to improve the countries energy mix and decrease reliance on imports over the coming decades.
The proposal includes plans to launch a new licensing round of exploratory gas and oil projects in the North Sea for Autumn 2022.
This will also be in conjunction with a new task force, the Gas and Oil New Project Regulatory Accelerators, providing support to new developments.
The aim of this is to increase the UK’s domestic supply of gas and oil and hopefully help ease the current energy crisis.