Cost Comparison: Electricity vs Gas for UK Homes

Consumer Energy Education
September 19th, 2024
Cost Comparison: Electricity vs Gas for UK Homes

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Which is More Cost-Effective for Your Home: Electricity or Gas in the UK?

In the UK, gas and electricity are the top energy sources for homes. People use them for heating, cooking, and running their appliances. Around 85% of UK homes can use the gas network, which is why gas is popular for heating. Most people rely on electricity for their appliances. However, the cost of these energy sources can vary. It depends on your usage, energy efficiency, and your location.

As the UK shifts towards renewable energy, electricity seems to be a better choice. More people are now using electric heat pumps. However, gas is still cheaper for every unit of energy. This is why many homes continue to choose gas for heating and cooking.

What are the environmental impacts of electricity versus gas?

Electricity often comes from non-renewable sources like coal and gas, contributing to air pollution and carbon emissions. Gas is cleaner but still releases CO2. However, electricity can be generated from renewable sources like solar or wind power, making it more environmentally friendly in the long run.

Gas vs Electric Heating Cost Comparison

When you look at gas heating and electric heating, the cost per kilowatt-hour (kWh) is very important. In October 2024, the cost of gas is around 6.16p per kWh. On the other hand, the cost of electricity is much more at 25.21p per kWh. Because of this, gas heating is often less expensive for many homes. This is especially true for homes that need a lot of heat.

Electric heating systems, such as heat pumps, work better than gas boilers. They can change nearly all the energy into heat. Gas boilers, on the other hand, waste some energy because of combustion and heat loss in the pipes. For smaller homes or homes with good insulation, electric heating might save you money in the long run, even if the cost per kWh is higher.

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Electricity vs Gas: Running Costs

The costs for electricity and gas can change. This depends on the appliances you use and how much energy you use in total. For example, many people use gas boilers for central heating and hot water. Gas boilers generally cost less to operate than electric systems. This is especially true in larger homes that require much energy for heating.

Running an electric heater costs around 25.21 pence each hour. A gas heater only costs about 6.16 pence per hour. Over a year, this difference can add up, especially in colder regions that need heating for a long time. However, modern electric systems, such as heat pumps, can help offset these higher costs.

Cost of Gas vs Electricity per kWh in the UK

Here is a table that shows the current rates and charges for gas and electricity in different regions. This is based on data from October 2024:

Region Gas unit rate per kWh Gas daily standing charge Electricity unit rate per kWh Electricity daily standing charge
Eastern 6.16p 31.43p 25.21p 50.84p
East Midlands 6.10p 31.49p 23.77p 56.90p
London 6.31p 32.00p 25.69p 41.59p
Midlands 6.20p 31.67p 23.83p 63.62p
Northern 6.22p 31.74p 23.19p 72.10p
Northern Scotland 6.16p 31.76p 24.96p 61.98p
North West 6.16p 31.76p 25.01p 52.04p
Southern 6.32p 31.30p 24.62p 64.28p
South East 6.17p 31.39p 25.24p 57.84p
Southern Scotland 6.16p 31.80p 23.96p 64.17p

Gas is cheaper than electricity everywhere. The cost of gas is between 6.10p and 6.52p for each kWh. In comparison, electricity costs more, from 23.19p to 25.69p for each kWh. Also, the fees for electricity are higher than the cost of gas. This is especially true in areas like Northern Scotland and the Midlands.

Energy Bill Comparison: Gas and Electricity

UK homes that use gas for heating, cooking, and hot water typically pay less for energy than homes that only use electricity. Ofgem says the average yearly bill for both gas and electricity is around £1,717 for a typical household under the price cap set in October 2024.

For homes that only use electricity, energy bills can be high. This happens because the cost of electricity is higher per unit. If you heat your home with electric storage heaters or radiators, your yearly energy costs can go up by £400 to £600. This is when you compare it to homes of the same size that use gas central heating.

Gas and Electricity Energy Bill Comparison

Which is Cheaper: Electricity or Gas?

In most cases, gas is the cheaper option for homes in the UK. It costs less per kWh and is easy to find. This makes gas the better choice for heating, cooking, and hot water. However, electric systems like heat pumps can also be very efficient. They work well and can save more money in homes that are well-insulated or use renewable energy.

As the UK works to reduce carbon emissions, the cost of electricity may improve. This is true because of new advances in renewable energy and help from government programs like the Boiler Upgrade Scheme.

Gas vs Electric Heating in the UK

Gas central heating is the most favoured and cost-effective method to warm homes in the UK. Gas boilers heat water effectively. They send warmth through radiators, which are good for larger houses. While electric heating, such as storage heaters and heat pumps, is more efficient, it can be more expensive. This is because the unit cost of electricity is higher.

Electric heat pumps are getting more popular. They are very efficient, with a performance rate of 300-400%. These systems can help lower carbon emissions, especially when powered by renewable energy.

Pros and Cons of Gas vs Electricity for Home Heating

Gas Pros:

  • Lower costs for running every kilowatt-hour
  • Quick and reliable heating for larger homes
  • Simple to locate and use

Gas Cons:

  • Produces more carbon emissions than electricity.
  • Requires regular upkeep, such as boiler servicing.
  • There is a risk of carbon monoxide leaks.

Electricity Pros:

  • Very close to 100% effective in turning energy into heat.
  • Safer and cleaner, with no risk of leaks.
  • Works best in small homes or those that are well-insulated.

Electricity Cons:

  • Running costs are higher due to the expensive unit price.
  • Installing electric central heating systems, such as heat pumps, costs more.
  • There is a need to rely on renewable energy sources to lower carbon emissions.

Electricity vs Gas Efficiency

Electric systems, such as heat pumps and electric radiators, are great at turning energy into heat. They come very close to being 100% efficient. On the other hand, gas systems waste some energy when they burn fuel, allowing heat to escape. This makes gas systems less efficient overall. Gas boilers typically work at about 90% efficiency. However, electricity is still the better choice for energy conversion.

Gas costs less per kWh. This makes it a cheaper option for homes that use a lot of energy. This is especially helpful for homes that do not have good insulation.

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Comparing Energy Sources: Gas vs Electricity for Home Use

Gas is typically used for heating, cooking, and hot water, while electricity powers most appliances and lighting. While gas remains the cheaper option for heating and cooking, electricity is often used in conjunction with gas for other household needs.

Electricity, when sourced from renewables, also has the potential to be a cleaner energy source than gas. With the UK moving towards its net-zero targets, there is a growing shift towards using more electricity in homes, particularly for heating and hot water through systems like heat pumps. This shift is supported by government incentives and the rising availability of renewable electricity.

Gas vs Electricity: Carbon Footprint Comparison

One of the main factors driving households towards electricity is its lower carbon footprint compared to gas. Burning natural gas for heating and cooking releases carbon dioxide (CO2), contributing to climate change. On average, using gas for heating a home emits around 2.5 tonnes of CO2 per year, according to the Energy Saving Trust.

Electricity, on the other hand, can have a much lower carbon footprint, particularly if it is generated from renewable sources like wind or solar. The UK government has set a target to phase out gas boilers by 2035, encouraging the adoption of electric heating systems powered by renewable energy. This shift is expected to significantly reduce the carbon footprint of UK homes.

It's important to note that the carbon footprint of electricity depends on the energy mix used to generate it. While renewables are on the rise, a portion of the UK's electricity is still generated from fossil fuels. As of 2023, about 43% of UK electricity comes from renewable sources, with this percentage expected to increase in the coming years.

Carbon Footprint Comparison

Gas vs Electric Cooking Cost Comparison

Gas stoves and ovens often cost less to run than electric ovens because gas is cheaper. However, electric ovens, especially induction hobs, are getting better at saving energy. They heat only the pot and not the space around it. The price difference for cooking may not be very large compared to heating. Despite this, people who cook often can still save money with gas.

Gas vs Electricity: Household Costs

Household costs for gas and electricity depend on several things. These include how much energy you use, how efficient your appliances are, and the prices in your area. Gas is still the cheaper option for heating. People often use electricity more for appliances. As the UK moves to renewable energy, electricity might become a better deal. This is especially true for hot water and heating.

Electricity vs Gas for Heating Bills: What Affects Costs?

Heating bills are affected by a variety of factors, including:

  1. Size of your home
  2. Type of heating system
  3. Energy efficiency of your property
  4. Insulation quality
  5. Local climate
  6. Personal heating preferences

Gas heating tends to result in lower bills due to the cheaper cost of gas, but electric systems can offer lower bills in homes that are well-insulated or have low heating demands. Heat loss is another key factor. In older homes, gas heating may be less efficient due to heat loss through walls, windows, and roofs, whereas electric systems, particularly underfloor heating or heat pumps, can distribute heat more evenly and reduce overall consumption.

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FAQs About Electricity vs Gas

Which is more expensive, electricity or gas in the UK?

Electricity is significantly more expensive than gas in the UK. As of October 2024, electricity costs around 25.21p per kWh, while gas costs about 6.16p per kWh.

Is electric heating cheaper than gas heating?

No, gas heating is generally cheaper than electric heating due to the lower cost of gas. However, electric heating can be more efficient, especially in well-insulated homes, and can be more cost-effective when using renewable energy sources.

What’s more efficient: electric or gas heating systems?

Electric heating systems are generally more efficient at converting energy into heat, with near 100% efficiency at the point of use. Gas systems lose some energy through combustion and heat loss, making them less efficient overall.

How does the carbon footprint of gas and electricity compare?

Electricity has a lower carbon footprint than gas, especially when sourced from renewable energy. Gas produces carbon dioxide when burned, contributing to climate change, while renewable electricity is much cleaner.

What’s better for cooking, gas or electric?

Gas stoves offer more precise heat control and are generally cheaper to run, while electric stoves, especially induction hobs, are more energy-efficient and easier to clean. The choice depends on personal preference and the availability of energy sources in your home.

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