Annual domestic electricity bill in the United Kingdom (UK) 2010-2023

The average annual domestic electricity bill in the United Kingdom saw an overall increase from 2010 to 2022 and boomed in 2023. In this period, households with an annual consumption of 5,100 kilowatt-hours saw bills rise from 539 to 1,152 British pounds, including value-added tax. The household expenditure on electricity in the UK amounted to approximately 26.3 billion current British pounds in 2022.

Direct debit payments consistently cheaper

In the period under consideration, the annual bill for an electricity consumption of 3,600 kilowatt-hours was consistently more expensive for consumers using standard credit as a method of payment, averaging 959 real British pounds in the latter year. From 2016 onwards, consumers using the prepayment method paid less than standard credit consumers and, in 2022, their bill was the least expensive, at 903 real British pounds. 

Electricity prices on the rise

Household electricity prices in the UK have doubled in the past decade for both consumer groups. Despite the UK government setting a tariff cap to protect consumers, UK’s power market was greatly impacted by the global energy crisis. In the summer of 2022, electricity prices in Great Britain peaked at 363.7 British pounds per megawatt-hour.