This article aims to set out some info about billing that might help those who've had a mid-winter shock.
Firstly it is important to understand that both gas and electricity are paid for in kWh units, and its these unit costs that you need to pay attention to if you want to know if you're on a good deal, every supplier will have a range of tariffs with a range of costs.
At the time of writing (Feb 2025) most electricity unit rates are around 24.5p and gas unit rates are around 6.5p.
That is in line with the energy price cap whose current rates can be found by clicking here.
The energy price cap is the highest rate that suppliers can legally charge, it changes every three months, you may be paying more than that rate if you have already agreed to a long-term deal. When that comes up for renewal the next tariff should be inline with the rates at that time.
You can check on your bill to see what rates you are paying, it'll look something like the picture below.
If you find that your unit rates are high compared with the current norms then check when your deal ends, if you are not locked into a long-term tariff then you can ask your current supplier to put you on their cheapest rate and if you are not satisfied then you can start to shop around.
To do so visit one of the many comparison websites, simply search the web for 'compare energy' and you can visit a variety of sites offering a similar service.
Importantly, if you want to understand the rates that they are offering look for the unit rate in kWh for each suggestion.
If you are locked into a long-term deal then it will likely have an early exit fee, you'll need to judge whether or not it is worth paying that to get out and switch supplier.
Above is a graph showing how a typical UK household will use their gas, as you can see the vast majority of domestic gas use is in the winter, the amount we use for cooking is trivial in comparison to our heating needs.
If you heat with electricity your consumption will show a similar winter spike, if you don't heat with electricity then your electricity use will be more evenly spread.
If you are paying month by month for your use then your bills are going to spike in the winter and be much lower in the summer.
This is why most people choose to pay their bills by direct debit at an agreed monthly rate one twelfth of their estimated annual cost.
If you do not have such an agreement with your energy provider then we suggest you speak to them and get that billing set up to avoid winter shocks.
For a typical UK home using 11.500 kWh of gas and 2,700 kWh of electricity that would mean an annual bill around £1,700 which divided by 12 should mean a £141 monthly bill every month, even in the summer when homes use very little energy.
Beware, energy suppliers are notorious for overcharging and keeping themselves in credit with your money, that's ok if you can afford it as they will adjust your bill and refund you periodically, its not ok if you find it hard to make ends meet, in that case you should contact your supplier and ask them to refund your credit and adjust your monthly bill to a level that better reflects your annual consumption. Some overpayment is fine, having credit keeps you safe from unexpected shocks.
Fuel poverty is defined as when a household spends more than 10% of its income on heating bills, we know that is the reality for many in our community.
The three causes of fuel poverty are: High energy costs, low incomes and low energy efficiency.
If you need further help with managing your bills and wish to speak to experts in this field then get in contact with the Footprint Trust, this long-established Isle of Wight charity can provide help with all aspects of high bills and fuel poverty over the phone or in-person. Call them on: 01983 822282
If you need help with energy efficiency then contact us, and we can guide you towards help.
A typical UK home uses 11.500 kWh of gas and 2,700 kWh of electricity per year, if your energy use is much higher then think about getting some detailed energy advice.
In a cold winter a modest sized gas heated house might use 3,500 units or more in a single month, that can mean £200 just for gas, with electricity and standing charges on top.
Paying direct debit every month at an agreed rate with your supplier protects you from the winter spikes, contact your supplier and they should be able to help set you up with that, but remember they do tend to keep hold of a bit extra.
