Working from home to add hundreds to energy bills

October’s price cap increase will see employees working from home pay an extra £131 a month this autumn, research from Uswitch.com has suggested.

Last week Ofgem announced the cap would be increasing by 80% on its current level of £1,971, taking it to £3,549. This will see a typical household pay £363 per month for their gas and electricity.

Uswitch estimates that full time home workers increase their daily gas use by 75% as they put the heating on for an extra ten hours a day during the coldest months, while electricity use is predicted to rise by 25% as they cook meals and use appliances such as kettles.

The extra usage, Uswitch said, will take the typical bill for people working from home five days a week to £494.

It means those who spend less than £30 on their weekly commute could save on their bill by going to their work place.

Costs increase for larger households, which are likely to pay £513 per month under the new cap. This will rise to just under £700 for those working from home. These households will save money by going into work if their commute adds up to less than £46.

Occupants of smaller homes like flats are likely to pay £243 on average per month for their energy bill, rising to £330 for those working from home. A commute of less than £20 a week will make it cheaper to go into work for these households.

The latest estimates predict the cap is to rise to almost £5,400 in January, meaning the average household will be paying £580 a month for their energy, compared to £789 for those who are working from home.

Larger homes meanwhile will see an average January bill of £861, rising by £310 for home-workers to £1,171 a month.

Ben Gallizzi, energy expert at Uswitch.com, said: “Working from home during the colder months of the year is obviously going to be more expensive as employees are likely to need their heating on during the day.

“Using extra energy when the heating would usually be off will be especially noticeable on bills this year with prices rising by 80%.

“Not only do people working from home use more energy staying warm, they are also cooking lunch and making cups of tea, as well as running computers, TVs and phone chargers.

“The amount of extra energy home workers use will vary, but we estimate that people at home for an extra 50 hours per week could use about 25% more electricity and 75% more gas per day this winter.

“Based on this, for workers who don’t have an expensive commute, working from the office is likely to be more economical this winter.”

Consumer protection will be discussed in more detail at Utility Week Forum this November. For more information and to book your place, see our website.