Why is my energy bill too high?

Since 2021, global energy prices have gone up sharply.

As countries opened up following the COVID-19 pandemic, businesses and industries restarted - and energy demand increased worldwide

With more people and businesses using energy, prices naturally rose.

And then came Russia’s invasion of Ukraine.

Russia is one of the world’s biggest gas and oil exporters, and many countries - including the UK - relied on it for energy supplies

After the invasion, much of this supply was cut off or reduced, which caused gas prices to shoot up.

Compared to other countries in Europe, the UK has very little gas stored in reserve.

So we’re much more dependent on buying gas on the global market, where prices can change quickly.

Even if you don’t use gas at home, it still affects your electricity bill.

That’s because a lot of the UK’s electricity is generated in gas-fired power stations.

So when gas prices go up, electricity prices often rise too.

The energy price cap limits the maximum amount suppliers can charge per unit of gas and electricity. 

But it doesn’t cap your total bill - the amount you pay depends on how much energy you use.

The price cap applies to households on standard variable tariffs, which are the default tariffs for customers who haven’t switched to a fixed-rate deal. 

Ofgem reviews and updates the price cap every three months based on several factors, including: 

• wholesale energy costs
• network maintenance costs
• supplier operating expenses
• government policies and environmental obligations
• inflation

Even if prices haven’t changed, your bill can still be higher than expected for several reasons.

You’ve moved home

Your new home might be less energy efficient or larger than the last place you lived in.

You’re on a variable tariff

The amount you pay if you’re on a variable tariff can go up and down depending on market prices.

You’ve been sent an estimated bill

If you don’t give meter readings, or you’re not on a smart meter, your supplier will guess how much gas and electricity you use.

Their estimates will be based on your past usage and/or typical consumption for similarly sized houses, but they might not necessarily be accurate.

Inefficient appliances

Old or faulty appliances can use more energy than you think.

That can be a big problem if it’s an appliance you have switched on all the time, such as a fridge or freezer.

Your meter may be faulty 

This is rare, but it does happen.

If your usage seems way off, even with no changes, ask your supplier to check it.

Your energy use has changed

The amount of energy you use will vary throughout the year and reflect your circumstances at the time.

For example, if it’s cold and you put the heating on, that will push up your bill.

Or if you start working from home several days a week, you’ll be using more energy than you would if you were in the office.

But you can bring your bills down by making small changes to your habits and behaviours.

Check out our guide outlining easy ways you can save energy in the home.

If you’re keeping a close eye on your bills, it’s worth knowing what other households use, so you can see if you’re using more than average.

You can find your usage on your latest energy bill.

Look for figures in kWh (kilowatt hours).

If you’ve checked your usage and still think your bill is too high, then speak to your supplier.

Tell them what you think is wrong, take and send photos of your meter readings and ask for a breakdown of your usage and charges.

If you can't resolve the issue with your supplier, you could then escalate your complaint to the energy ombudsman.

If you’re finding it hard to keep up with your bills, contact your supplier, as they might be able to offer help such as grants.

It’s also well worth checking to see what other support you might be eligible for.

Use our benefits calculator or get in touch to find out what you could claim.

And don’t forget to try our handy budget planner, so you can see where you could save money in your household and free up cash for vital expenses.