Estimate your electricity and gas bill based on current Ofgem price cap rates. See your breakdown by fuel type and monthly average.
Calculate your annual dual-fuel bill with current Ofgem rates
Based on Ofgem Q1 2025 price cap. Your actual bill may vary by region and meter type.
UK energy bills comprise two main charges: your unit rate (pence per kWh used) and a daily standing charge (a fixed daily fee). Both are regulated by Ofgem through a quarterly price cap.
Your energy bill is made up of two parts. The unit rate is what you pay for every kilowatt-hour (kWh) of electricity or gas you actually use—currently around 24.5p per kWh for electricity and 6.2p per kWh for gas under the Ofgem price cap. The standing charge is a fixed fee you pay every day just to stay connected to the grid, regardless of whether you use any energy. For most households, the standing charge is about 61p/day for electricity and 35p/day for gas.
The Ofgem price cap is a government-set limit on how much energy suppliers can charge. It's reset quarterly (January, April, July, October) based on wholesale energy costs, so your bills can change several times a year. The cap protects you from overly high prices but doesn't guarantee you're on the cheapest deal—there are always cheaper tariffs available from competing suppliers if you're prepared to switch.
A typical UK household with 2,700 kWh of electricity and 11,500 kWh of gas per year spends around £1,698 annually on energy. However, this varies hugely by region (Scotland is cheaper than London) and by meter type (prepayment meters typically cost 10-15% more per unit than credit meters).
Direct Debit customers pay less than credit meter customers—by paying a fixed amount each month, suppliers accept less risk and pass savings to you. If you pay by card or cash (prepayment), suppliers charge extra to cover the cost of managing more volatile payments and meter visits.
To reduce your energy bill, focus first on the biggest energy users: heating (which uses gas or heat pump electricity), hot water, and cooking. Here are the most cost-effective measures: switch heating to 60°C thermostat (every 1°C reduction saves ~3%), insulate your loft (pays back in 1-2 years), seal draughts around doors and windows (£20 stops £50 of heat loss), replace old heating controls with programmable thermostats (saves 10-15%), and use LED bulbs throughout your home (saves 80% on lighting costs).
If you have cavity walls, insulation grants and ECO schemes can sometimes fund this for free or cheaply. The payback is typically 5-7 years and reduces bills by £100-200/year. Heat pump installation (replacing gas boilers) is a longer-term investment but can eliminate gas bills entirely and eventually pay for itself as electricity becomes cleaner and cheaper.
Price Cap Methodology: Ofgem's default Tariff Domestic Customer Valuation (TDCV) model is the official baseline for price cap calculations. It uses a profile of a "typical household" consuming 2,700 kWh/yr electricity and 11,500 kWh/yr gas. The price cap is composed of: unit rate (p/kWh), standing charge (p/day), and a supplier margin (~1.5%). Each of the 14 DNO regions has a different electricity network charge (DNO DUoS charges vary 2-3x between regions), which feeds into the cap.
Ofgem Price Cap Structure: The cap applies to all suppliers' default tariffs but does NOT prevent cheaper fixed-rate tariffs. The cap resets quarterly, with new rates published on the 22nd of the month before the quarter starts. Prepayment meter customers typically pay 5-10% more per unit due to prepayment premiums (allowed under cap). Credit meter customers also pay more than Direct Debit (typically 3-5% premium).
Regional Variation: The 14 DNO distribution regions (E, EM, LPN, MPN, NET, NEEB, NWEB, SEEL, SELN, SEPD, SWEB, WMEB, YEDL, NGET_T) have different fixed and variable network charges. This means a household in London (SELN region) will pay more for the network component than one in Scotland (SSE region), even if wholesale energy costs are identical. Regional distribution loss factors (typically 1.04-1.07x) also vary.
Meter Types and Charges: Credit meters (monthly billing) are cheaper than prepayment meters (keypad/card), which add 10-15% to unit rates. Smart meters (SMETS1/SMETS2) enable time-of-use tariffs and half-hourly data for larger users. Economy 7 (peak/off-peak split) can reduce bills 5-10% for night storage heating users but increase costs for others.
VAT and Additional Charges: Energy is charged at 5% VAT (the lowest reduced rate). Bills also include: Energy Company Obligation (ECO) costs (~1-2% of bill), Fuel Poor Network Extension scheme (FPNES), and supplier costs for Ofgem compliance (GDPR, SDR, CMA rules). Total non-commodity costs typically add 15-20% to the wholesale energy cost.
Calculation Method: Annual bill = (Units × Unit Rate) + (Standing Charge × 365 days), with all pence converted to pounds and rounded. The calculator here uses standard Direct Debit rates; prepayment or credit meter adjustments should be applied by the supplier based on contractual premiums.