Households with three to four bedrooms in the UK will see their energy bills rise from Wednesday, July 1, as a new Ofgem price cap takes effect. According to Uswitch data, the estimated average annual dual fuel energy bill for these homes is currently £1,640, but this will increase to £1,862 under the July 2026 price cap.
Average Energy Usage for Medium Households
Ofgem classifies the average electricity usage for a medium household (three to four bedrooms) as 2,700 kWh per year (225 kWh per month), while average gas usage is 11,500 kWh per year (958 kWh per month). Based on current unit rates under the April 2026 price cap, the average electricity bill stands at £666.09 per year (excluding the annual standing charge), and the average gas bill is £660.10 per year (also excluding the standing charge).
Breakdown of the New Price Cap
The July 2026 price cap sets unit rates at 5.74p per kWh for gas and 24.67p per kWh for electricity. Standing charges are 29.09p per day for gas (£106.18 per year) and 57.21p per day for electricity (£208.82 per year). Using these figures, the annual usage for a medium household totals £1,641 when rounded up, which is the figure commonly used by Ofgem, the government, and the media to illustrate the energy price cap.
The average daily usage for gas is calculated at 31.5 kWh, while for electricity it is 7.4 kWh.
What Drives Average Bills
Uswitch explains: "When we talk about average gas and electricity bills, we're usually talking about the price of standard variable tariffs. The average gas and electricity bill for those on standard variable tariffs is affected almost entirely by the level of the energy price cap, which is set by Ofgem according to wholesale market prices. It limits the price that suppliers can charge per unit rate of gas and electricity. If wholesale prices rise, so does the cap."
Uswitch adds: "There are two main elements that affect average gas and electricity bills in the UK, then: wholesale market prices, and then Ofgem's reaction via the price cap. But the average bill is only average if that's the amount of energy you use - if you use more or less, your bill will be higher or lower than the average."
