The energy price cap will decrease by £238, which means that the average household using a typical amount of energy shouldn’t pay more than £1,690 per year for energy.
But larger households could still see their yearly bills exceeding this figure, which could come as a shock to many.
This is because the energy price cap reflects the maximum amount an average-sized household might expect to pay for their gas and electricity, so if your household is smaller or larger than this, the amount you’ll actually pay could be lower or higher than this. You can find out more about how the energy price cap works in our guide What is the energy price cap?
Here, we look at what you can actually expect to pay based on the size of your property and the number of people living there.
How much can different sized households expect to pay for their energy bills?
The price cap that the energy regulator Ofgem announces every quarter indicates the amount that an average sized household of three to four people living in a semi-detached home might expect to pay for the energy they use. If your living situation doesn’t look like this, however, then your annual energy bill might look dramatically different.
Here’s what the average bill could look like for small, medium and large households both at the previous price cap and at the price cap that came into effect on 1 January.
| Size of house and household | Previous Energy Price Cap (1 Oct – 31 Dec 2023) | Price cap from 1 January | |
| Small house or flat for one to two people | Annual cost | £1,374 | £1,312 |
| Cost per month | £115 | £109 | |
| Annual difference from average | -£460 | -£616 | |
| Monthly difference from average | -£38 | -£51 | |
| % difference | -25.06% | -31.95% | |
| Medium semi-detached house for two to three people | Annual cost | £1,834 | £1,928 |
| Cost per month | £153 | £161 | |
| Larger detached house for four to five, or more people | Annual cost | £2,738 | £2,596 |
| Cost per month | £228 | £216 | |
| Annual difference from average | £904 | £668 | |
| Monthly difference from average | £75 | £56 | |
| % difference | 49.27% | 34.62% |
These figures are based on the average gas and electricity usage from Ofgem which are:
| Size of house and household | Standard usages | |
| Gas | Electric | |
| Small house or flat for one to two people | 7,500 | 1,800 |
| Medium semi-detached house for two to three people | 11,500 | 2,700 |
| Larger detached house for four to five, or more people | 17,000 | 4,100 |
Of course, there are a number of variables that can affect the amount of energy households use, including how energy efficient and well-insulated your home is, which energy tariff you’re on and the habits of the people living there, so these figures are intended to be purely illustrative.
If you’re considering switching your energy provider, it’s worth doing plenty of research so you can be certain you’ve found the best possible deal to suit your needs. Comparison websites such as MoneySuperMarket, Uswitch and Compare the Market enable you to compare the latest energy tariffs, whether you’re looking for a fixed or variable deal.
How to work out what energy price cap really means for you
When the energy price cap changes, what actually changes is the maximum amount your energy provider can charge you for gas or electricity per kilowatt hour (kWh) over a certain period.
Currently the energy price cap limits energy providers to charging you no more than 27.62p per kWh for electricity and 7.42p per kWh for gas, and daily standing charge limits for electric can’t exceed 53.35p and 29.60p for gas.
To work out roughly how much more you might need to pay you’ll first want to find your average annual gas and/or electricity usage in kWh, multiply it by the new price cap value and add the daily standing charge you’re paying, too.
You can usually find your energy usage on your energy bills.
If possible, it’s useful to find your usage for a full year so you can get an accurate view of how much energy you use during different seasons, and not just the summer or winter months.
If you’re struggling with your energy bills
The spike in energy bills in recent years means huge numbers of people are finding it difficult to make ends meet.
If you are starting to struggle or can see problems arising down the road, then it’s important to know that there are a number of options you can explore. Our articles What can you do if you can’t pay your energy bills? and The energy bills crisis: what can you do about soaring costs? offer some ideas which might help. If you’re on a low income, you may be able to get a grant from your energy support to help you pay off your energy debts. You can find out more about this in our guide Is your energy supplier offering grants to pay off energy debts? – Rest Less
Whatever your situation, it’s a good idea to seek advice if you’re struggling to pay your energy bills. There are plenty of free sources of support available and many charities and organisations can help you figure out your finances and can advise how to move forward repayment plans with your creditors on your behalf. These include:
- Citizens Advice – 0800 144 8848 (England) 0800 702 2020 (Wales)
- StepChange – 0800 138 1111.
- National Debtline – 0808 808 4000
- PayPlan – 0800 280 2816
Whatever happens, please don’t suffer in silence, as trying to cope with debts on your own can take a real toll on your mental health. If you are finding it hard to cope, our article Are money worries affecting your mental health? explains where to go for help if you need someone to talk to.
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