Finding ways to save money on energy bills will be top of plenty to-do lists in the coming weeks.
Ofgem’s energy price cap is soaring to £3,549 up from £1,971 – a whopping increase of 80% – from October 2022, which means monthly bills will start to rocket, too.
Many will be particularly concerned about the cost of heating their home during the cold winter months.
So, is your central heating currently the most cost effective it can be? Would it perhaps be cheaper to have an electric heating system than one powered by gas?
Let’s have a look.
Is electric heating cheaper than gas?
No. When it comes to using energy, gas is typically cheaper than electricity.
Looking at Ofgem’s price cap rates, gas can cost up to 7p per kWh (going up to 15p in from October 1, 2022), and electricity up to 28p per kWh (also going up to 52p).
If you add in the daily standing charge – which is what energy suppliers charge you for the trouble of providing you energy, regardless of what you use – gas is still cheaper.
Ofgem puts the daily standing charge for gas as 27p (or 28p from October) while electric is higher at 45p (soon 46p).
Other comparisons looking out how many pence each kWh used comes to (aka cost per unit), even when the figures are less than quoted above, often see gas come out cheapest.
That said, you may need to think about other costs, too.
If you’re looking to install a gas central heating system, that could certainly cost more than an electric one up front, according to Checkatrade – which quotes an average of £5,250 to electric’s £3,790.
It’s also important to consider any maintenance your new heating system might need.
If you’re worried about being unable to pay your energy bills, there are ways to cut back on energy usage, but also find the different avenues of help that are available.
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