Average Electric Costs UK: 3 Bedroom House
Have you recently moved to a 3 bedroom house? It might help to know the kind of electric bill you can expect for your new property.
To start things off, the average electric bill for according to Ofgem’s December 2020 stats for a 3 bedroom house in the UK is:
- £51.44 /Month
- £617.29 /Year
However, this figure is approximate and depends on the following:
- The region your 3 bedroom house is located in.
- Whether you are on a standard variable, fixed, dual fuel, online energy, green energy, or pre-payment “Pay as you go” tariff.
- The fuel sources your energy provider uses (Fossil fuels, Nuclear, Renewable energy, Imports).
- Consuming electricity as your primary source of heating.
- Using high-power-consuming electrical instruments.
- Poor electricity saving practices.
- Market fluctuations in the energy sector.
However, you can probably estimate your electric bill to be around the figures above. But since so many factors determine what your actual average bill is. It is certainly a lot better to look at regional averages for electric bills as well to determine a more accurate estimate.
Region-wise Monthly Estimated Electricity Bill
Region-wise Yearly Estimated Electricity Bill
A 3 bedroom house falls under a medium residential category. It typically uses 3100 kWh per year ( Ofgem statistics). Apart from that, additional electricity standing charge per day is also payable by you with the bill. The standing charge also varies from region to region. Typically, it averages around 23.03p per day.
Why Is My 3 Bed House Electricity Bill High?
It is frustrating for a homeowner or a tenant to experience high utility bills. When you move from a single or double bed to a 3-bed house and experience more than average electric bills, it affects your domestic budget. It is at that exact time, one would want to consider his or her options to control their electrical bill costs.
How Electricity Tariffs Have Considerable Impact On My Bill?
The electricity tariff is the key factor when it comes to the electricity cost you pay per month/year.
Official Ofgem stats for January 2021 shows a Dual Fuel Standard variable tariff of £1,042 per year. Electricity standard variable averages at £600 per year. While the cheapest fixed tariff is £936 per year and the electricity fixed tariff alone is £450 per year.
The electric unit price increments in 2020 reveal that the gap between standard and fixed tariffs has shrunk considerably. Before 2020, you could have saved 100s of pounds by switching over to fixed plans. The latestOfgem’s State of the Energy Market 2020 report shows that you can save up to £150 by shifting from standard to cheap fixed tariffs.
According to Ofgem, 48 suppliers are in direct competition for providing electricity. In comparison with Europe, the UK is able to maintain its ranking above average for electricity prices. That is the reason that in 2020, 5.8 million domestic UK electricity consumers preferred cheaper tariffs above the standard ones. You could have further reduced the electric cost by choosing a cheaper electricity energy provider to take full advantage of the private-sector competition.
The UK is able to maintain its ranking around average for electricity prices in comparison with Europe. In 2020 alone, 5.8 million domestic UK electricity consumers preferred cheaper tariffs above the standard ones.
According to Ofgem, 48 suppliers are in direct competition for providing electricity. So consumers further reduced their electric costs by choosing a cheaper electricity energy provider to take full advantage of the private-sector competition.
Why Electrical Bills For The Past Few Years Gone up?
Even if you decide to switch from standard to fixed tariffs, the energy bills are still shooting up. There are a number of factors involved in it.
Electrical suppliers like all businesses run their businesses for profit. Whenever the operating costs which include maintaining wires and upgrading infrastructure rise, your due bill amount rises with it.
Wholesale electrical costs almost eat up 1/3rd of your bill. For the past couple of years, it has been steadily rising as well.
Taxes and other direct costs from the supplier’s end also play a major part in more than an average power bill. Less pre-tax margins lead to overbilling.
Supplier’s less pre-tax margins over the years because of debt financing and other taxes lead to overbilling and increased energy costs. Ofgem and the Government put a cap on standing charges and unit prices so that the suppliers can not manipulate prices above their designated margins.
But Ofgem regulates the price cap regularly. In their recent 5th February 2021 announcement, Ofgem recommended to domestic consumers to switch suppliers rather than lowering the electricity cap. This decision will result in electric suppliers increasing their unit price and standing charges and thus the end-user will pay more than the recent yearly average bill figures.
What Are The Ways To Lower Electric Consumption Beside Cheap Tariffs?
If your house uses electric heating instead of gas heating, it might cost you more. This is because the average unit cost of gas is around 4p per kWh while an electricity unit average cost is 17p. Although the price difference may be 4 times, the cost isn’t four times more expensive, but is more expensive nonetheless. There are quite a few houses in the UK that are totally on electrical power. Cost increase as a result of regulation or legislation also come into play as most of them are pointed towards electric unit prices.
Another major drawback is that keeping only one energy source excludes you from switching to dual-fuel cheap fixed price tariffs.
Seasonal bill adjustment and higher consumption of electricity in winters also contribute towards higher electrical costs. The study shows a 30% to 40% higher power usage in winters rather than in the summers.
You can also monitor electrical consumption by purchasing any smart meter brand. It will help you choose a more calculated fixed deal tariff or a standard variable tariff on the basis of your yearly electricity consumption.
Use Of Energy Efficient Electrical Appliances
For the last 15 years, major electrical appliance manufacturers are introducing appliances that can save energy resulting in fewer electrical bills. From tube lights to energy savers to LED technology, you can buy the best energy-efficient appliances to cut down electricity bills.
Also, you can apply timers on different appliances to use less power. Central heating equipment, air conditioners, and microwaves are common examples to use timers wisely. Moreover, you can buy these power-consuming appliances from manufacturers that use new technology that helps in reducing electrical costs.
Insulating your house is another great way to let the appliances work efficiently. The more heat escapes you avoid store by insulation, the lower the electricity costs will be.
Keeping cell phones on charging even if fully charged and keeping your computers and laptops on standby with AC power on is asking for more electricity bills. Be sure to let them off charge on time.
The use of energy-saving bulbs is another proven method to lower electric bills.
Going Green Means Huge Savings
The UK government offers easy ways to pay for energy-related home improvements through the green deal for your home to make it more energy-efficient. You can do windproofing, double glazing or triple glazing, insulation, heating control and some other options that can result in less electric bills.
The draught control and glazing will contribute to huge energy savings as heat will not escape through the windows. There are some energy-efficient doors available that won’t let the heat escape from underneath and sides as well. All of these measures let the heating and other equipment with thermostats work efficiently and increase their tripping time for better energy savings.
Another option to reduce energy costs through the green deal is solar panels. Installing solar panels on your roof ensures more than affordable electricity costs.
You can significantly lower electric bills because electrical consumption is only needed to charge the batteries at night time or when the sun is shy.
The solar system installation in your 3 bedroom house can be expensive. The costs may average between £2,400 to £9,000 for 3kW to 5kW solar systems depending on the quality of solar panels and labour costs.
Though the solar system installation costs seem high, it ensures long-term cost savings. You can save around £300 on your yearly electricity bill.