Falling demand led to drop in household energy bills in 2017

Falling demand and lower gas prices led to a £36 drop in the average household energy bill in 2017, official figures have revealed.

The latest statistics from the Department for Business, Energy and Industrial Strategy (BEIS) show combined bills for gas and electricity down 3.1 per cent year-on-year at £1,112.

Average electricity bills rose by £10 – or 1.9 per cent – to £565. If demand had remained constant, the increase would have been more than three times larger at £32.

With consumption pegged at 3,800 kWh per year, electricity bills were up 5.7 per cent at £619.

Direct debit bills swelled by £42 to £601 and standard credit bills by £47 to £670. Prepayment bills dropped £4 to £619.

Variable tariff bills across all payment methods grew by £35 to £647 and fixed tariff bills by £37 by £566.

Effects of prices and consumption on average energy bills

Source: BEIS

Average gas bills declined by £46 – or 7.8 per cent – to £547, with £19 of the decrease coming from lower gas prices and £27 coming from reduced demand.

Based on a fixed consumption level of 15,000 kWh per year, they were down 3.1 per cent at £630.

Direct debit bills decreased by £6 to £608. Standard credit bills dropped by £10 to £693, whilst prepayment bills plummeted by £81 to £631.

Variable tariff bills fell £29 to £666 although fixed tariff bills increased by £1 to £562.

Average energy bills at fixed levels of consumption

Source: BEIS. Note: Based on electricity consumption of 3,800 kWh per year and gas consumption of 15,000 kWh per year.