Gas and electricity — how to save money
Average bill: £137/month. Octopus Energy is the best provider (£50 bonus with referral). Smart meter — free. Warm Home Discount — £150 discount if you are on UC.
How much does energy cost in 2026
| Parameter | Amount | Note |
|---|---|---|
| Price Cap (Apr–Jun 2026) | £1,641/year | 6.6% lower than Q1 2026 |
| Average bill/month (Direct Debit) | ~£137 | Gas + electricity |
| Prepayment meter | ~£145/month | Slightly more expensive |
| Electricity only | ~£80–90/month | If you have no gas |
* Your real bill depends on the size of your home, insulation, and your habits. Small flat — £80–100/month. House — £150–250/month.
Best energy providers
| Provider | Pros | Bonus |
|---|---|---|
| Octopus Energy | #1 for service. Smart tariffs. Clean energy | £50 credit with referral link (you and your friend) |
| British Gas | Largest provider. Hive smart home | — |
| EDF Energy | Competitive fixed tariffs | — |
| OVO Energy | Good app, green energy | — |
| E.ON Next | Competitive variable rates | — |
How to switch provider — in 5 minutes
- Find your current tariff — look at your last bill or your provider's app
- Compare on Uswitch.com or MoneySupermarket — enter your postcode and yearly usage
- Choose a new provider — they will switch everything in 5 working days
- Your supply will not stop — gas and electricity work as normal during the switch
No exit fee on standard variable tariffs. On fixed tariffs — check the terms.
Warm Home Discount — £150 discount
One-time discount of £150 on your electricity bill every winter.
Who gets it:
- People on Pension Credit (Guarantee Credit) — automatically
- People on UC, income-based JSA/ESA, Income Support — if your home has "high energy cost" (poor insulation)
The scheme is extended until 2031. Check with your provider.
Smart meter — free installation
- Free — your provider installs it at no cost
- Shows real usage in real time (in pounds)
- Sends readings automatically — no estimated bills
- In-Home Display (IHD) shows how much you are spending right now
- 86% of users started saving after installation
- £40 compensation if installation is delayed more than 6 weeks (Ofgem rule 2026)
Request it from your provider or call them.
10 ways to save on energy
Save ~10% on heating = ~£80–100/year
On combi boilers — save ~4% on gas
Uses 40% less electricity than 40–60°C
"Phantom load" can be up to 30% of your bill. Turn off TV, chargers at the socket
Draught strips cost a few pounds at B&Q, the effect is huge
Use 75% less energy. £1–2 per bulb at Lidl/Aldi
Increases humidity → boiler works more. Dry on a line or a drying rack
Heat escapes from room to hallway. Closed door = less heating
See your usage in real time → you automatically start saving
Compare tariffs on Uswitch.com once a year
According to Octopus Energy — you can save ~£271/year by following basic tips.
Energy debt — what to do
- Call your provider — they must offer a payment plan
- Fuel Bank Foundation — emergency vouchers for prepayment meters
- British Gas Energy Trust — grants to pay off debt (open to everyone, not only BG customers)
- Ofgem rules: your provider CANNOT disconnect you in winter if you are elderly, disabled, or have small children
- Citizens Advice: 0800 144 8848 (free) — they can help you negotiate with your provider
- StepChange: 0800 138 1111 — free debt help
Frequently asked questions
How much does gas and electricity cost per month?
Average bill in 2026: ~£137/month (price cap £1,641/year). Small flat — £80–100. House — £150–250.
How do I get the £150 discount (Warm Home Discount)?
If you are on Pension Credit — automatically. If on UC/JSA/ESA — depends on your home type. Check with your provider.
Is the smart meter really free?
Yes. Your provider installs it for free. It shows real usage. Request it from your provider.
Can they disconnect my energy if I have debt?
Only as a last resort. In winter they cannot disconnect elderly people, disabled people, or families with children. Always call your provider — they must offer a plan.