Quick links:

• Understanding your electricity bill
• Average electricity usage for a three-bedroom house
• Why your electricity bill isn’t average
• How to calculate your own electricity bill
• How your three-bedroom home compares
• Practical ways to reduce your electricity bill
• Making a budget? “Average” isn’t enough

For UK families dealing with the cost-of-living, setting a household budget is the best way to keep costs down. Knowing exactly how much you pay for each bill, makes it easier to plan ahead and spot stray spending. 

Your utility bills, e.g. gas and electricity, are usually the biggest expense after your mortgage or rent, so need to be at the centre of your budget. Everyone pays for electricity, but what you pay can vary, depending on your usage and other factors.  The cost of electricity depends on your tariff, your supplier, your usage and the energy efficiency of your home. 

For example, the average annual electricity bill for a three-bedroom house is £960 (direct debit) – around £80 per month. This is an average based on Ofgem data, which states that an average three-bed house uses 2,700 kWh of electricity per year.

Averages are just that: average. Keep reading for a better idea of how much you’ll pay for electricity and ways to keep costs down. Want more predictable bills? Bundle your gas, electricity, water, broadband and TV licence into one easy payment with a One Utility Bill package. 

Your electricity bill is made up of two elements:

• Cost per kWh (kilowatt hour): This is what you pay for the electricity you actually use.
• Daily standing charge: This is a basic daily payment which covers grid maintenance, admin costs, etc.

The Energy Price Cap

The Energy Price Cap is the maximum a utility company can charge you (for usage and standing charges) per year on a standard variable tariff. This is set every quarter by Ofgem based on the average wholesale cost of energy plus other factors. 

For the period 1st October to 31st December 2025, the Energy Price Cap for electricity on Direct Debit is:

• 26.35 pence per kWh (direct debit).
• 25.54 pence per kWh.
• 53.68 pence daily standing charge.

The price cap applies to your bills if you pay for your electricity by:

• Standard credit (payment made when you get your electricity and gas bill).
• Direct debit.
• Prepayment meter.
• Economy 7 (E7) meter.

Before looking at costs, it helps to understand how much electricity a typical three-bedroom house actually uses. Here’s what average consumption looks like in practical terms.

Taking the average annual electricity usage of 2,700 kWh for a three-bed home, this is equivalent to:

• 225 kWh per month.
• 7.4 kWh per day.

For context:

• A typical kettle uses approximately 0.11 kWh to heat 1 litre of water. 
• A washing machine uses 2.1 kW per 60-minute cycle
• An electric shower uses 7 kW per hour, which equals roughly 38.7p for a ten-minute shower.

Your lifestyle will dictate how you match up to the ‘average’ figures, which are really only there as a guideline.

A lot of daily habits have a surprising impact on your energy usage and whether your home has above or below average monthly bills:

• If you dry your clothes in a tumble dryer or an electric airer or central heating,
• If you take regular baths vs short showers 
• Working from home using the heating vs out of home with no heating
• A lot of gadgets and smart devices plugged in 
• A big family using different rooms all day
• Older appliances vs. newer, more energy efficient ones 

Let’s take a closer look at why your electricity bill might not line up with the national average and what could be pushing it up or keeping it down.

The Energy Price Cap is designed to keep the price of energy fair, but it only caps the price you pay per unit of energy, and for standing charges, not your monthly bill. Your bill is based on usage if you have a traditional energy deal, so you pay for what you use.

Here’s why your bill might be above average:

Tariff types

The price cap only applies to standard variable tariffs and prepayment meters. If you’re on a fixed-rate deal, Ofgem’s cap doesn’t cover you because your price is usually fixed for one or two years, while the cap changes every quarter.

Home size

Not all three-bedroom homes are the same size. If your home is bigger, it will take more energy to heat even if you’re being careful, so your bill will be higher than the average 3-bed home.

Your usage habits

This is the biggest factor. If you’re a high usage household, your bill will be above average. We’ll talk later in this article about ways to keep energy usage down and reduce costs. 

Future price changes

Predictions about future price caps are just guesses. They can change quickly, so don’t rely on them for major decisions, and wait for future price caps to be announced, usually a couple of weeks before the change, to be certain. 

Where you live

Standing charges and unit rates vary across the UK. Some areas, like North Wales and the Mersey regions, have higher than average electricity costs due to factors like population density, transport costs, and tricky terrain. Southern Scotland has the lowest average electricity cost.  

How you pay

The most cost-effective way to pay for your electricity is monthly by direct debit, even if your bill is calculated quarterly, you can still pay monthly.

You may also choose to pay upon receipt of your bill, or you might have a pre-payment meter. 

Extra costs

On top of your usage and standing charge, you might still pay a bit more because of things like taxes, levies, or supplier fees.

When you receive your bill, your supplier shows you exactly how much you’ve used in kWh and your standing charges. You can also see your current usage on a smart meter. This helps you spot any hidden drains on your power, like appliances on standby. 

Your bill may be calculated monthly, quarterly or annually, depending on your supplier, even if you pay monthly. So, your calculations might not exactly match your monthly usage if averaged out over a year.

Calculating your electricity bill:

1. Download your most recent bill from your supplier’s website, OR check your smart meter for recent usage in kWh.
2. Check your rates: If the last bill is from a previous quarter, your rates may have changed.
3. Do the maths:  (Total kWh used × Unit Rate in £) + (Number of days × Standing Charge in £) = Your bill.

What about Unlimited Energy?

With One Utility Bill, you can get an Unlimited Energy tariff, which won’t be calculated like this, as it is the same price no matter how much you use. This is ideal for high usage households because there are no nasty surprises on your bill.. Get a quote for Unlimited Energy as part of a bill package.

Not all three-bedroom homes are the same. Factors like property age, size, number of occupants, location, and insulation all impact your utility bill. 

The averages given by the Energy Price Cap and British Gas class a ‘medium’ three-bedroom property as having 2-3 people, but many families may live in their properties with 1-2 children, which would likely take the consumption closer to the higher rate.

Remember, even with the Energy Price Cap in place, you pay for what you use. So, if you use a dishwasher, tumble dryer or electric radiators regularly, your bill will be higher. Equally, if you have solar panels or a heat pump, you’ll use less electricity.

Here’s the average electricity usage for each home size:

Here’s that same data, but monthly:

Most three-bedroom houses are dual fuel, so your bill is likely a combination of gas and electricity. Read our guide to find out the average monthly energy bills in the UK.

The biggest contributing factor to a high electricity bill is high usage. Here are some easy ways to keep usage down. Check out our easy energy saving guide and energy saving myths for more info.

• Get a smart meter: See how much you’re using at all times. Keep it somewhere visible, at least for a while, to keep reminding yourself of your usage. You’ll make smarter decisions about the energy and appliances you use, and easily spot anything adding up the kWhs. 
• Turn off appliances at night: Vampire energy is an overstated factor when it comes to wasted energy, but if you have a lot of gadgets on standby it could still be adding up, especially any that you don’t use often. Switch them off completely when you can. 
• Switch to LED bulbs: According to the Energy Saving Trust, they use 80% less electricity and last 20x longer than traditional halogen bulbs. 
• Use smart plugs: Smart bulbs and plugs connect to a phone app, not only showing you their kWh usage but also allowing you to turn them off or set timers remotely. 

If you’re looking to invest in your home’s energy efficiency and sustainability here are some more significant changes you can look into:

• Solar panels: You may even generate enough electricity to give back to the grid.
• Heat pump: These use electricity, but are more energy efficient over time than traditional gas or electric heating systems. For every unit of electricity you use, you can get three to four times as much heat (300 to 400%) in return.
• Insulation: If your home is warmer, you won’t use as much electricity on things like heated blankets or electric radiators. Older homes are especially likely to need better insulation as the years go on.

Making a budget? “Average” isn’t enough 

Knowing the average electricity bill is a good starting point, but an accurate budget starts with more info about your household’s usage.

There are so many variables, from the size of your property to where you live, how much electricity you actually use and whether your home is energy efficient. All of these factors make predicting your exact electricity usage tricky, which isn’t ideal if you’re trying to make a monthly budget.

Roll your choice of utilities into one, predictable monthly payment with a One Utility Bill package. One payment can make finances simpler and budgeting easier, especially if you choose a fixed tariff with Unlimited Energy. Get a quote for easier bills.