Bills of the Future
What might our household energy bills look like in the next decade?
Our utility bills always seem to be creeping up and after a year of such financial uncertainty for many of us, it can be worrying to think how they might continue to rise in the next few years.
While there’s no way of truly knowing how electricity and heating rates will change in the years to come, we’ve looked back at the last decade of prices to estimate how things could look if they continue to go up by the same rates in the decade ahead.
Looking first at the average annual cost of electricity, the average Brit paid £451 a year for their electricity back in 2010.
Fast forward to 2020 and that had risen by £256 (57%), to £707 a year, which averages out at an annual rate of growth of 4.7%.
So, if we were to then apply that same rate of growth to the next ten years, we estimate that by 2028, our average electricity bill will be in excess of £1,000 a year, hitting around £1,115 by 2030.
Next up, we also looked at how the average price of gas has changed in the UK over the last ten years, with the picture being much more mixed than that of electricity.
The average gas bill stood at £520 in 2010, which has fluctuated up to £691 in 2014 and now back down to £557 in 2020.
Taking these changes into account, the average growth rate stands at just 0.9%, which means that if prices continued on this trajectory, they would increase by £53 to £610 in 2030.
How to save money on your utility bills
If the thought of your bills growing in line with our predictions above, or you’re perhaps worried that you’re already paying above average for your electricity and gas, here are some tips on how you could try to keep them down.
- Turn your appliances off at the plug rather than leaving them on standby. Timer plugs and those which can be switched off using your phone are also available.
- Turn down your thermostat by a couple of degrees, or install a smart thermostat to heat your home more efficiently.
- When the time comes to replace your appliances and boiler, pay close attention to their energy efficiency ratings.
- Wash your clothes at 30 degrees rather than 40.
- Use a bowl when washing up, rather than just using running water.
- Try to spend less time in the shower, perhaps by fitting a shower timer.
- Invest in double glazed windows if your property doesn’t already have them.
- Ensure that your property is draft-proofed, as drafts can mean you have to turn the heating up. Similarly, make sure that your home and roof are properly insulated.
Average prices sourced from the Department for Business, Energy & Industrial Strategy’s annual domestic energy bills statistics.
Electricity prices refer to average annual domestic standard electricity bills for UK consumers,
Gas prices refer to average annual domestic gas bills for consumers in Great Britain, based on fixed consumption levels of 13,600 kWh per year.
All prices refer to both home and non-home suppliers across all payment methods and are inclusive of VAT.