Energy bill questions — answered in plain English
No jargon. No financial advice. Just clear answers to questions real people ask.
Why is my energy bill so high?
Most UK households are on a standard variable tariff (SVT) — the default tariff if you’ve never switched or your fixed deal expired. SVT rates track the Ofgem price cap, which rose sharply after the energy crisis of 2021–2022 and remains significantly higher than pre-crisis levels. Even with recent reductions, a typical household now pays around £1,641 per year — compared to roughly £1,000 before 2021. If your bill feels unexpectedly high, the most likely explanations are: you’re on an SVT and the cap rose, your usage increased (heating, new appliances, working from home), or there’s a billing error such as an estimated rather than actual meter reading.
What is a standing charge on an energy bill?
A standing charge is a fixed daily fee your supplier charges simply to keep you connected to the grid — regardless of how much energy you actually use. The current typical standing charge is around 61p per day for electricity and 32p per day for gas. That adds up to roughly £340 per year before you’ve used a single unit of energy. Standing charges vary between suppliers and are included in the Ofgem price cap. Some tariffs offer zero standing charges but compensate with higher unit rates — so it’s worth calculating your total cost based on your actual usage pattern.
What is a unit rate for electricity or gas?
Your unit rate is what you pay for each unit of energy you actually use. For electricity, units are measured in kilowatt hours (kWh) — one kWh is roughly the amount of electricity used by a kettle boiled ten times. The current typical electricity unit rate is around 24.5p per kWh and gas is around 6.24p per kWh. These rates are capped by Ofgem for customers on standard variable tariffs. If you’re on a fixed tariff, your unit rate was locked in when you signed up and won’t change until your deal ends.
What is the Ofgem price cap?
The Ofgem price cap sets the maximum amount energy suppliers can charge per unit of gas and electricity for customers on default (standard variable) tariffs. Importantly, it is not a cap on your total bill — it’s a cap on the rate. The more energy you use, the more you pay. Ofgem reviews and updates the cap every three months based on wholesale energy market prices. The current cap (April–June 2026) is set at £1,641 per year for a typical household using both gas and electricity.
How much will my energy bill go up in July 2026?
Ofgem will announce the confirmed July 2026 price cap by 27 May 2026. Based on current analyst forecasts (as of late April 2026), the cap is expected to rise to somewhere between £1,836 and £1,972 per year — an increase of roughly £195 to £331 compared to the current cap of £1,641. The increase is driven by higher wholesale gas prices following Middle East conflict. Use the BillLuma calculator to see how the increase affects your specific bill.
Am I on the price cap? How do I know?
You are covered by the Ofgem price cap if you pay for gas and electricity on a standard variable tariff (SVT) — sometimes called a default tariff. This is the tariff you’re automatically placed on if you’ve never actively chosen an energy deal, or if your fixed deal expired and you didn’t renew. If you’re unsure, check your bill or online account — it will state your tariff name. Most fixed tariff names include words like “Fix”, “Fixed”, “Tracker”, or a year (e.g. “1-Year Fixed”). If you don’t see any of those, you’re likely on an SVT.
Can I switch energy supplier if I rent?
Yes. Renters in the UK are free to switch energy supplier, with very few exceptions. You have the right to switch unless: your landlord pays the energy bills directly and includes it in your rent, you’re in a HMO (house in multiple occupation) where the landlord has a contract with a specific supplier, or your tenancy agreement explicitly states you cannot switch (which is rare and may be unenforceable). In most standard rental situations, the energy account is in your name and you can switch freely. Not sure what your current bill means? We explain bills from the biggest suppliers in plain English: British Gas, Octopus Energy, E.ON Next, EDF Energy, and ScottishPower.
Is it safe to switch energy supplier?
Yes. Switching energy supplier in the UK is a regulated process overseen by Ofgem. Your gas and electricity supply will never be cut off during a switch — the physical pipes and wires stay the same, only the company billing you changes. The process typically takes 17 days from the moment you confirm the switch. You’ll need to provide an opening meter reading on the switch date. If you’re in credit with your current supplier, they are legally required to refund you within 10 working days.
How long does switching energy supplier take?
Switching typically takes around 17 days from when you confirm the switch to when your new supplier takes over. Some suppliers offer faster switches. During this time, your energy supply continues uninterrupted. You do not need to do anything on the switch date — just take a meter reading and submit it to both your old and new supplier to ensure accurate final and opening bills.
What is an SVT tariff?
SVT stands for Standard Variable Tariff — also called a default tariff. It’s the energy tariff you’re automatically placed on if you haven’t actively chosen a fixed deal. The rates on an SVT change in line with the Ofgem price cap every three months. SVTs are generally more expensive than the best fixed deals available, which is why comparison sites encourage switching — though the gap narrows when wholesale prices are volatile.
What is the Warm Home Discount?
The Warm Home Discount is a government scheme that provides a one-off £150 discount on electricity bills for eligible low-income households. Eligibility is assessed automatically by the government using DWP data — you don’t need to apply if you receive certain benefits including Pension Credit (Guarantee Credit element). Other households on low incomes may be able to apply directly through their energy supplier. The discount applies to your electricity bill (not gas) and is credited directly to your account, usually between October and March each year.
What is the difference between a fixed and variable tariff?
A fixed tariff locks in your unit rate and standing charge for a set period — typically 12 or 24 months. Your rate won’t change during this period regardless of what happens to wholesale prices or the Ofgem cap. A variable tariff (including the standard variable tariff) moves up or down with the Ofgem price cap, which is updated every three months. Fixed tariffs offer certainty and can save money if prices rise — but you may pay a penalty (exit fee) to leave early.
What exit fees might I face when switching?
If you’re on a fixed tariff, your supplier may charge an exit fee if you switch before your deal ends — typically £25–£50 per fuel (so up to £100 for dual fuel). If you’re on a standard variable tariff, there are no exit fees. Exit fees are waived if there are 49 days or fewer remaining on your fixed deal. Always check your tariff’s exit fee before switching — BillLuma shows exit fees prominently in any comparison results.
What does BillLuma do with my energy bill?
BillLuma reads your bill using AI, extracts the key numbers (unit rate, standing charge, usage, supplier, payment type), and explains them in plain English. Your bill is processed entirely in memory — it is never written to disk or stored in a database. It is deleted within seconds of processing. We retain only 5 anonymised data points: kWh usage, unit rate, supplier name, postcode district, and property type. These are used to benchmark your usage against similar homes. No personal details are retained. Read more in our methodology.
How does BillLuma make money?
BillLuma earns a commission if you switch energy supplier via our comparison links. This is disclosed clearly on every comparison result. The commission is paid by the new supplier — it does not affect the deal you receive or the price you pay. The bill explanation service is always free, regardless of whether you switch. We also show deals from suppliers we don’t have a commercial relationship with, clearly labelled as having no referral link. Read our full affiliate disclosure.
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