How to Estimate Your Energy Bill
Understand how energy bills are made up, what unit rates and standing charges mean, and how to estimate your monthly costs.
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How energy bills are calculated
Your energy bill is made up of two parts:
- Usage charges: The amount of energy you use (in kWh) multiplied by the unit rate (in pence per kWh)
- Standing charges: A fixed daily fee charged regardless of how much energy you use
Unit rates vs standing charges
Under the current Ofgem price cap:
- Electricity unit rate: approximately 24.5p per kWh
- Gas unit rate: approximately 6.76p per kWh
- Electricity standing charge: approximately 61.64p per day
- Gas standing charge: approximately 31.65p per day
Your actual rates depend on your supplier, tariff, and region.
Typical household usage
| Household | Electricity (kWh/year) | Gas (kWh/year) |
|---|---|---|
| Small (1–2 people) | 2,000 | 8,000 |
| Medium (2–3 people) | 2,700 | 11,500 |
| Large (4+ people) | 4,100 | 17,000 |
How to estimate if you do not know your usage
If you do not have a meter reading or recent bill, use the typical consumption values above as a starting point. You can also check your supplier’s online account for historical usage data.
Try the calculator
Use our Energy Bill Calculator to estimate your monthly and annual energy costs.
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Last updated
Last reviewed: 2026-04-12T13:08:32.782Z.