What is an average bill?
The 'average' energy bill is a benchmark calculated by Ofgem, based on a typical consumption profile of a medium-sized household.
Understanding usage
Usage varies based on home size, insulation, and the number of people living in the home.
Typical consumption
For a medium dual-fuel home, Ofgem typically assumes around 2,700 kWh of electricity and 11,500 kWh of gas per year.
Factors affecting bills
Home size
Larger homes with more heating zones naturally cost more.
Energy efficiency
Better insulation significantly reduces total annual usage.
Using this benchmark
Use these averages to:
- 1
Benchmark usage
See if you are consuming significantly more energy than similar homes.
- 2
Budgeting
Plan your annual costs more accurately.
Benchmarks for everyone
These figures are industry standards.
Compare your annual statement: Check your own annual summary against Ofgem figures.
How to compare your usage
Follow these steps to make an informed choice:
- 1
Use your annual summary
The most accurate figure is your actual annual usage statement.
- 2
Compare on similar metrics
Ensure you are comparing like-for-like.
Pros and Cons of comparing
Pros
- Helps identify over-usage
- Essential for budgeting
- Useful when moving home
Cons
- Average is not specific to your home
- Ignoring lifestyle factors can be misleading
Why it matters
Understanding your energy footprint helps target efficiency investments.
Potential risks
Engaging with energy benchmarks requires care to ensure you don't overpay or miss critical protections.
For energy, failing to switch or manage your smart meter can lead to higher costs. For finance, errors on your report can lead to loan rejections.
Always use verified, independent sources like Ofgem or regulated financial services to compare options.
Alternatives
For specific insight:
Get an Energy Performance Certificate (EPC)
Gives a detailed breakdown of your home's energy efficiency.
FAQs
About this guide
Written and reviewed by the Grow Your Business team, and kept up to date as rates, rules and provider terms change.
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