Trying to calculate the average cost of an energy bill per month can be tricky, not least because there are so many variable that can affect the amount you pay – not only does everyone has different consumption habits, costs can also vary depending upon where you live, the amount of energy that you use, and even how you choose to pay for your energy.
Below are got some handy tables that show the average energy bill for customers on a standard tariff. If you’ve never switch supplier before, you’ve recently moved house, or your fixed rate deal has expired, you’ll have been placed on a one of these standard variable tariffs.
A duel fuel tariff is plan that means you get both your gas and electricity from the same supplier.
Energy companies often offer a discount for customers who commit to having both gas and electricity contracts with them, meaning that dual fuel tariffs can work out cheaper than getting your energy from separate suppliers.
Dual fuel is usually offered as a variable, fixed, or online tariff, so you’ll need to compare everything on offer to work out which is the best deal. If you don’t mind dealing with two suppliers, it’s definitely worth comparing dual fuel and single fuel deals to work out which will save you the most money. The more effort you put into scoping out suppliers, the better deal you can get.
For our calculations we have used the following annual energy usage amounts which are based on industry figures:
The bills shown are the cheapest average standard tariff in the market, correct as of 27/02/2018
There are a whole range of factors that affect the price of gas and electricity. Variables such as supply and demand, availability, wholesale costs, transport costs, and infrastructure maintenance all have an influence.
Then there are those things you probably wouldn't expect to affect the price you pay for gas and electricity, such as global conflicts and natural disasters, both of which are a reason for fluctuating prices. A lack of stability in an oil-rich area means lower fuel production and higher prices. The Libyan conflict in 2011, for example, meant that energy prices jumped to their highest in over two years and, more recently, Hurricane Harvey had an impact on energy prices.
The demand for energy not only drives the industry, but is arguably one of the largest factors affecting its price. Energy demand is about more than just domestic consumers. A huge range of industries have a part to play in the cost of our energy. From fuel and transportation, to manufacturing, computers, telecommunication and even construction - the industry is made up of many sectors and influencers. The price that we see is partly dictated by these.
The wholesale price of the raw resources - such as coal and gas – also plays a huge part in the price we pay for energy. These prices are continuously fluctuating on a global and European scale as countries bid to meet demand. As and when prices in the wholesale market change, it can affect the Big Six as well as smaller suppliers. Nobody is totally immune to increase in cost - from consumers to companies.
The world's growing adoption of sustainable energy sources is slowly beginning to erode our reliance on traditional fossil fuels. The use of more diverse energy resources means there is less demand on any particular supply, something that we predict will lead to price drops in the future.