Daily Junction.mobi portalNews · July 16, 2026 · Daily Junction Editorial Team · 7 min
The average UK energy bill is £1,928 per year (2024) — here's why bills doubled in 2022, how the price cap works, and how to cut your costs.
The average UK energy bill is £1,928 per year (October 2024 price cap), down from the peak of £4,279 in January 2023 but still double pre-crisis levels (£1,042 in 2021). Energy bills soared in 2022 after Russia's invasion of Ukraine caused global gas prices to spike 10 times, and the UK was hit particularly hard because it is heavily reliant on gas (40% of electricity, 80% of heating) and has limited gas storage. The Ofgem price cap limits what energy suppliers can charge per unit of gas and electricity, protecting 29 million households on standard variable tariffs. Here is everything you need to know about UK energy bills — why they are so high, how the price cap works, and how to save money.
The Ofgem price cap sets the maximum amount energy suppliers can charge per unit of gas and electricity. The cap is updated quarterly (January, April, July, October) based on wholesale energy costs.
October 2024 price cap:
| Period | Average annual bill | Change |
|---|---|---|
| October 2021 | £1,277 | Pre-crisis baseline |
| April 2022 | £1,971 | +54% (crisis begins) |
| October 2022 | £3,549 | +80% (peak crisis) |
| January 2023 | £4,279 | +21% (all-time high) |
| April 2023 | £3,280 | -23% (government support) |
| July 2023 | £2,074 | -37% (prices fall) |
| October 2023 | £1,923 | -7% |
| January 2024 | £1,928 | +0.3% |
| April 2024 | £1,690 | -12% |
| July 2024 | £1,568 | -7% |
| October 2024 | £1,928 | +23% |
Bills peaked at £4,279 in January 2023 (though the government capped bills at £2,500 through the Energy Price Guarantee). Bills have since fallen but remain 85% higher than pre-crisis levels (October 2021).
Russia is the world's largest gas exporter, supplying 40% of Europe's gas. When Russia invaded Ukraine in February 2022, Europe imposed sanctions on Russia, and Russia cut gas supplies to Europe in retaliation.
This caused global gas prices to spike 10 times (from £0.50 per therm in 2021 to £5.00+ per therm in 2022).
The UK is heavily reliant on gas:
When gas prices spiked, UK energy bills soared.
The UK has limited gas storage (1% of annual demand), compared to 25% in Germany and 20% in France. This means the UK cannot stockpile gas when prices are low, so it is more exposed to price spikes.
The UK closed its largest gas storage facility (Rough, off the Yorkshire coast) in 2017 due to safety concerns, reducing storage capacity by 70%.
The UK has some of the worst insulated homes in Europe. Around 19 million homes (60%) have poor insulation, wasting energy and increasing bills.
UK energy suppliers buy gas and electricity on the wholesale market (where prices fluctuate daily based on supply and demand). When wholesale prices spiked in 2022, suppliers passed the costs on to consumers.
The Ofgem price cap was introduced in 2019 to protect consumers from being overcharged by energy suppliers. It sets the maximum amount suppliers can charge per unit of gas and electricity.
The price cap protects 29 million households (80% of UK households) on standard variable tariffs (SVTs) — the default tariff when you do not switch to a fixed deal.
The price cap does not protect households on fixed tariffs (where you lock in a price for 1–2 years).
The price cap is based on:
The cap is updated quarterly (January, April, July, October) to reflect changes in wholesale costs.
The price cap includes standing charges — a fixed daily fee you pay even if you use zero energy. Standing charges cover:
October 2024 standing charges:
Standing charges are controversial because they penalise low energy users (e.g., people who are away from home, or who use very little energy). Some suppliers offer zero standing charge tariffs, but the per-unit rates are higher.
Bills have fallen from the peak of £4,279 in January 2023 to £1,928 in October 2024, but they are still 85% higher than pre-crisis levels (£1,042 in October 2021).
In October 2024, the price cap is £1,928 per year. If you can find a fixed tariff below £1,928, switch to it.
But most fixed tariffs are currently above the price cap, so staying on the cap is cheaper. Check comparison sites (MoneySuperMarket, Uswitch, Compare the Market) and switch only if it is cheaper.
Pros of fixed tariffs:
Cons of fixed tariffs:
Reducing your thermostat by 1°C saves £80 per year (10% of heating costs). Most people do not notice the difference.
Replace old appliances (fridge, washing machine, boiler) with energy-efficient models (A-rated or higher). This can save £100–£200 per year.
Insulating your loft, walls, and floors can save £300–£500 per year. The government offers grants for insulation (ECO4 scheme) for low-income households.
Appliances on standby (TV, microwave, phone chargers) waste £50–£80 per year. Switch them off at the plug.
Smart meters show your energy use in real-time, helping you identify waste. They are free from your energy supplier.
Washing clothes at 30°C instead of 40°C saves £20 per year.
Reducing shower time from 10 minutes to 5 minutes saves £70 per year (on hot water).
Draught-proofing doors and windows saves £50 per year.
LED bulbs use 80% less energy than old incandescent bulbs and save £40 per year.
The government has provided £40 billion in energy bill support since 2022:
The government capped bills at £2,500 per year (October 2022 – June 2023), saving households £1,000–£1,500 compared to the market rate.
The government gave every household £400 (paid in instalments, October 2022 – March 2023).
The government gave £900 to low-income households (on benefits) and £300 to pensioners (Winter Fuel Payment).
Low-income households get £150 off their energy bill (winter 2024–25).
Bills are expected to remain high (£1,800–£2,000 per year) for the next few years, as wholesale gas prices remain elevated.
Bills are unlikely to return to pre-crisis levels (£1,042 per year) without:
The UK is investing £100 billion in renewable energy (wind, solar, nuclear) to reduce reliance on gas. By 2030, the UK aims to generate 100% of electricity from renewables (up from 40% in 2024).
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