An update to the UK’s average energy bill

Every two years, Ofgem updates the Typical Domestic Consumption Values (TDCVs). These values mark the average amount of energy the average small, medium and large homes consume over a year.

For 2023, these figures have fallen. This means that the average UK household is using slightly less energy than previous years.

What the TDCV means for you

If you've got a smart meter or you send us regular meter readings, these new averages won't mean much for you. But if you aren't sure how much energy you use and you need to understand price changes or new tariffs, the averages are a handy way to compare like for like.

While everyone’s energy bill is different, the TDCVs are used to generate quotes for comparing tariff deals if you don’t know how much energy you use. The average figures act as a guide to your annual energy price, based on the size of your home and the number of occupants.

If you already know your exact energy figures, you won’t need to use these values. By supplying your meter readings, your tariff quotes will be more accurate.

What are the new values?

Ofgem have updated the TDCVs for 2023. As a snapshot, the average electricity value for a medium home has reduced from 2,900 kWh to 2,700 kWh, and from 12,000 kWh to 11,500 kWh for gas. This means the average annual bill for an energy customer paying for both fuels by Direct Debit on a flexible (or standard variable) tariff is now £1,834.

When you're shopping around or looking at the updated energy price cap prices, the cost of an average bill may seem lower. The reason for this is that it’s based on the new typical energy consumption figures – so less energy use than we saw in previous years, rather than an actual reduction in cost.

It’s important to remember that these figures are a guide to average energy use. Your bill may be higher or lower, depending on your actual energy consumption. It’s always best to provide accurate meter readings to make sure that you only pay for what you use.

Why do TDCVs get updated?

The TDCVs are usually updated by Ofgem every two years to reflect any changes in the nation’s energy consumption. The average UK household is using less energy, so the national averages have been updated to reflect this.

It’s worth noting that this update is a little later than the standard two year timeframe, as Ofgem have only used information from 2019 and 2021 to calculate the averages. This is because of the exceptional circumstances UK households faced in 2020, when Covid-19 would have affected the overall figures.