Understanding energy bills in the UK: What homeowners need to know
With energy prices remaining a key concern for UK households, understanding how much you're likely to pay—and what affects those costs—is more important than ever. Whether you’re looking to cut your bills or improve your home's environmental impact, improving energy efficiency is a crucial step.
At Carpenter Surveyors, we guide homeowners through the practical steps they can take to better understand and reduce their energy use. Below, we break down the latest data and advice on energy bills, EPC ratings, and potential savings.
What Is the Average Energy Bill in the UK?
The average energy bill varies depending on your property's Energy Performance Certificate (EPC) rating and size. For example, a three-bedroom semi-detached home with an EPC rating of D typically incurs an energy bill of around £211 per month, or approximately £2,536 annually.
As a general rule, the better your home’s EPC rating, the lower your energy bills are likely to be. That’s because energy-efficient homes require less power for heating, lighting, and hot water.
Here is a detailed chart here showing average energy bills by property type and EPC rating.
| Property type | EPC rating A | EPC rating B | EPC rating C | EPC rating D | EPC rating E | EPC rating F | EPC rating G |
|---|---|---|---|---|---|---|---|
| 1-bed flat | £495 | £817 | £1,249 | £1,804 | £2,432 | £3,025 | £3,884 |
| 2-bed flat | £475 | £960 | £1,452 | £2,132 | £2,955 | £3,795 | £4,895 |
| 3-bed terraced house | £479 | £1,041 | £1,797 | £2,542 | £3,508 | £4,452 | £5,735 |
| 3-bed semi-detached house | £438 | £1,023 | £1,831 | £2,536 | £3,499 | £4,559 | £5,541 |
| 3-bed detached house | £451 | £1,134 | £1,976 | £2,782 | £3,781 | £4,852 | £6,450 |
| 4-bed semi-detached house | £621 | £1,264 | £2,316 | £3,267 | £4,566 | £6,395 | £7,895 |
| 4-bed detached house | £604 | £1,376 | £2,487 | £3,457 | £4,694 | £5,994 | £8,523 |
| 5-bed detached house | £734 | £1,928 | £3,299 | £4,609 | £6,139 | £7,914 | £10,487 |
Where to Find Energy Usage and Costs
Your home's EPC report provides a useful estimate of annual energy costs, based on the condition of the property at the time of assessment. It includes:
An estimated cost for heating, lighting, and hot water
A list of recommended improvements, along with potential cost savings and expected increases in efficiency
It’s worth noting that any upgrades made after the EPC was issued (such as new insulation or double glazing) won’t be reflected until a new certificate is produced.
Why Do Greener Homes Have Lower Bills?
Homes with higher EPC ratings are more energy efficient. This means they require less energy to maintain comfortable living conditions, resulting in lower fuel costs and carbon emissions.
Many homes in the UK, especially those built before modern energy standards, fall into the lower EPC bands. The average EPC rating in the UK is a D, which highlights the need for nationwide improvements.
Improving your home’s energy efficiency is not just good for your wallet—it’s also better for the planet. According to the Office for National Statistics, approximately 26% of UK greenhouse gas emissions come from residential properties.
How Can You Save on Energy Bills?
There are a number of low-cost or no-cost measures that can lead to meaningful savings over time:
Lowering your combi-boiler flow temperature
Keeping curtains or blinds closed at night
Using energy-efficient appliances
Installing a smart meter (if you don’t already have one)
Small changes can quickly add up. You can also consider larger improvements, such as:
Installing a smart thermostat
Upgrading loft or wall insulation
Replacing older windows with double or triple glazing
Switching suppliers or fixing a better tariff might also lead to savings. Use a reputable comparison tool or speak to your energy supplier to explore your options.
We’ll be including a visual showing common household mistakes that cost £100s annually, and how to avoid them.
Long-Term Improvements: Making Your Home More Efficient
If you're planning to invest in more substantial upgrades, retrofitting could significantly enhance both your EPC rating and your home's value. Key upgrades include:
Solar panels
Air-source or ground-source heat pumps
High-performance glazing
Comprehensive insulation
While upfront costs can be significant, the long-term savings, increased comfort, and potential boost to your home's resale value can make it worthwhile. According to Rightmove’s Greener Homes Report 2023, improving your EPC rating from F to C could boost your home’s value by an average of £56,000.
There are also government-backed schemes available to help offset costs, including:
The Great British Insulation Scheme
The Boiler Upgrade Scheme
Future Trends in Energy Prices
From July to September 2025, Ofgem’s energy price cap is set to fall by 7% to £1,720, offering some relief to households. However, market analysts such as Cornwall Insight expect prices to potentially rise again toward the end of the year.
The energy price cap—updated quarterly—limits what suppliers can charge customers on standard tariffs. While it doesn’t cap your total bill, it does set a maximum rate per unit of gas or electricity used.
Future changes will depend on global energy markets, particularly the wholesale price of gas, which remains volatile.
Frequently Asked Questions
Q: How much energy does a typical household use?
According to Ofgem, a typical UK household uses around:
2,700 kWh of electricity
11,500 kWh of gas
This means gas accounts for about 80% of total usage, largely due to heating systems.
Q: What is the energy price cap and how does it work?
Set by Ofgem, the price cap limits how much energy suppliers can charge per unit. As of July–September 2025, the cap is £1,720 per year for a typical dual-fuel household paying by direct debit.
Q: What appliances use the most energy?
Here’s a rough breakdown of how much power common appliances use:
100-watt light bulb: 1 kWh per 10 hours
Fridge-freezer: 1 kWh every 26 hours
Electric oven: 1 kWh every 15 minutes
Tumble dryer: 4.5 kWh per cycle
Summary
Improving your home’s energy efficiency is a smart move, financially and environmentally. At Carpenter Surveyors, we can support you in understanding your property’s current performance and recommend improvements that align with your budget and goals.
If you're planning to buy, sell, or upgrade your home, a detailed survey and EPC review can be a valuable starting point. Get a quote from Carpenter Surveyors here for your survey and valuation requirements.