What are the average gas & electricity prices per Kwh in the UK?

average-gas-electricity-prices-uk-per-kwh

In the complex landscape of UK business operations, understanding the intricacies of energy costs is crucial. Energy expenses, encompassing gas and electricity, represent a significant portion of overheads for businesses, impacting their bottom line. With fluctuations in the energy market, staying informed about the average prices per kilowatt-hour (kWh) can empower businesses to make strategic decisions, negotiate better contracts, and implement energy-saving measures. This article delves into the current state of gas and electricity prices in the UK, tailored towards the business sector, providing insights and considerations for managing these essential resources more effectively.

What is the average electricity price/cost per kwh across the UK?

The average cost of electricity per kWh in the UK is 28.62p. That is a 4.6% increase compared to previous rates. Here is the breakdown per region:

RegionAverage Electricity Price (p/kWh)
London29.73p
South East29.38p
Eastern29.22p
Southern28.79p
Southern Western28.43p
N Wales and Mersey29.57p
South Wales28.71p
Midlands28.12p
East Midlands28.02p
Yorkshire27.79p
North West28.44p
Northern27.81p
Southern Scotland28.16p
Northern Scotland28.48p

What is the average gas price/cost per kwh across the UK?

The average cost of gas per kWh across the UK is 7.42p. Here is the breakdown per region:

RegionAverage Gas Price (p/kWh)
London7.42p
South East7.45p
Eastern7.31p
Southern7.52p
Southern Western7.62p
N Wales and Mersey7.45p
South Wales7.57p
Midlands7.34p
East Midlands7.29p
Yorkshire7.35p
North West7.42p
Northern7.34p
Southern Scotland7.37p
Northern Scotland7.37p

Why do energy prices vary per region of the UK?

Energy prices in the UK vary by region due to a mix of factors related to the supply chain, infrastructure, and market dynamics. The distance between energy production sites and consumers, coupled with the efficiency of the local distribution network, significantly impacts transmission and distribution costs, leading to regional price differences. Additionally, the specific needs and characteristics of the local network infrastructure, such as maintenance and operation costs, contribute to these variations.

Regulatory policies, market competition levels, and regional demand patterns further influence energy prices. Areas with higher competition among suppliers might enjoy lower prices, while regions with less competition could face higher costs. Climate differences and varying levels of industrial activity also affect regional energy demand, impacting prices. Moreover, investments in renewable energy sources and energy efficiency measures in certain regions can lead to lower energy costs over time, showcasing the role of local policies and consumer behavior in shaping energy prices. Understanding these factors is crucial for managing energy costs effectively and highlights the importance of targeted regional energy policies and infrastructure investments.

Will Energy prices go down in 2024?

The maximum amount suppliers may charge homes for each unit of gas and electricity is regulated by the energy price cap, which will increase from £1,834 to £1,928 per year in January. This will result in a 5% increase in typical family bills. For the remainder of 2024, the price restriction is anticipated to return to £1,800.

According to some analysts, prices will begin to decline once more in April 2024. The price cap may be around £1,816 in April and drop slightly to roughly £1,793 in July. The immediate effect on customers is worrisome, though. Energy bills are already a burden for many households; 41% of them find it difficult. 

How can I calculate my energy usage?

To calculate you energy usage, visit: https://www.energybrokers.co.uk/electricity/calculate-your-electricity-bill-online

How can I keep energy bill costs down?

Keeping energy costs down is crucial for businesses looking to enhance their sustainability and improve their bottom line. Implementing a strategic approach to energy management can result in significant savings. Here are some practical steps businesses can take to minimize their energy bills:

1. Conduct an Energy Audit

Start with a comprehensive energy audit to identify where and how energy is being used—and wasted—in your operations. This audit can highlight opportunities for savings that might not have been previously considered. Professional energy audits can provide tailored recommendations for energy efficiency improvements.

2. Optimize Heating, Ventilation, and Air Conditioning (HVAC) Systems

HVAC systems are among the largest consumers of energy in businesses. Regular maintenance, such as cleaning, servicing, and timely replacement of filters, can significantly improve their efficiency. Additionally, investing in modern, energy-efficient HVAC systems can lead to long-term savings.

3. Upgrade to Energy-Efficient Lighting

Switching to LED lighting from traditional incandescent or fluorescent lights can drastically reduce your lighting energy consumption. LEDs are not only more energy-efficient but also last longer, reducing both energy and maintenance costs.

4. Implement Smart Energy Management Systems

Smart energy management systems can automate the control of lighting, heating, and cooling based on occupancy and the time of day. These systems can significantly reduce energy waste by ensuring that energy is used only when and where it’s needed.

5. Invest in Energy-Efficient Equipment

When it’s time to replace or upgrade equipment, choose energy-efficient models that are designed to use less energy for the same level of performance. Look for the Energy Star label or equivalent certifications in your region.

6. Encourage Energy-Saving Behaviors

Foster a culture of energy awareness within your organization. Educate your employees about the importance of saving energy and encourage practices such as turning off lights and equipment when not in use, utilizing natural light, and maintaining optimal thermostat settings.

7. Explore Renewable Energy Options

Consider investing in renewable energy sources, such as solar panels, to generate your own clean energy. While the initial investment can be significant, the long-term savings and potential to sell excess energy back to the grid can make it financially viable.

8. Review and Negotiate Energy Contracts

Regularly review your energy contracts and consumption patterns to ensure you’re getting the best possible deal. Don’t hesitate to shop around or negotiate with suppliers for better rates, especially if your business has reduced its energy consumption or if market prices have changed.

9. Monitor and Analyze Energy Usage

Implement systems to continuously monitor your energy usage. This can help you identify trends, detect areas of inefficiency, and respond quickly to reduce waste. Data analytics can also inform better decision-making around energy use.

10. Invest in Insulation and Energy-Efficient Building Design

For businesses that own their premises, investing in high-quality insulation, energy-efficient windows, and thoughtful building design can reduce the need for heating and cooling. These measures can have a substantial impact on energy consumption.

How can we help at Niccolo?

Our main business is supplying gas and electricity to commercial premises. This can be anything from a small shop, to a takeaway, a restaurant, an office, a warehouse. We can even supply gas to large industrial users like factories. As long as you’re using less than 30GWh annually, we can help.

But that’s not all Niccolo can do for you.

We also offer:

  • Green gas – based on UK and EU carbon offsetting.
  • Gold Gas – Each unit of gas that you use is matched by a unit of biomethane being added to the grid.
  • New Gas Meter Installations – where it’s a brand new site, your old meter has been removed or is on its last legs, we can help.
  • Carbon Offsetting – Offset all or part of your energy usage with Niccolo.

We’ll be adding more products and services in the future, so if there is something that your business really needs, why not get in touch.

info@niccolo.co.uk