'Typical' energy use will fall – don't mistake it for cheaper prices

What is typical use?

It's the amount of kilowatt hours (kWh) - the unit used to measure gas and electricity - which Ofgem has calculated to represent what a typical home in Great Britain uses.

It covers low, medium and high users, across standard credit, prepayment and Economy 7 meters.

For the most part, sites like ours will only use medium usage for people with standard gas and electric credit meters.

The energy regulator sets a 'typical use' amount for both gas and electricity to be able to calculate a standardised benchmark for the average annual household energy bill in Great Britain. This enables the energy industry to put an average yearly price on the Price Cap and any other energy tariff, so we can easily compare them.

How is it changing?

Ofgem regularly reviews these figures to ensure they reflect changing patterns of gas and electricity use across Great Britain. It has found that household energy consumption in Great Britain has reduced considerably in recent years (typical use figures were last amended in October 2023), largely due to households actively changing energy use habits to try to mitigate excessively high energy costs since the energy crisis began in 2022. As well as changing behaviours, more households are adopting energy-efficient technology, and using renewables such as solar panels and electric cars.

This means, from 1 July, the headline prices you see will look like they've risen less than was predicted.

But bear in mind, energy usage varies massively from household to household, and your annual cost will always be different from the headline figures you'll see quoted for the Price Cap and other deals, as what you pay depends on how much you use and where you live (as prices vary by region).

To easily compare tariff prices, we use Ofgem's values for a 'medium,' household. Here's how it's changing:

No firm's gas or electricity unit rates or standing charges will change because of this typical use figure. It's only average, typical-use prices that will be different – the headline figures you'll see quoted in the media.

However, the Price Cap will rise on 1 July, so all those on standard tariffs (everyone not on a fix) will see their bills increase.

If we use the current typical use figures, the Price Cap from July will be £1,862 a year, up 13.5% from £1,641 a year.

But if we use the new typical use figures, the Price Cap from July will rise by 12.6% to £1,663 a year on average, up from the current Cap at £1,477 a year.

However, this is only a measure we use to compare between tariffs – what you actually pay will always depend on your specific usage, the region you live in and the way you pay for your energy.

If you're one of the millions on the Price Cap, there are tariffs that are worth considering. Use our Cheap Energy Club to do a bespoke comparison and find your cheapest deal based on your actual usage and where you live. We've also got loads more info on the alternatives to fixing in our Should you fix? guide.