Gas and Electricity for Students: A 2026 Guide

For students works the same way as for any UK household, but students often pay too much because no one sorts the bills out properly. If you rent a private student house, you and your housemates are usually responsible for choosing a supplier, splitting the cost and keeping meter readings up to date. Getting this right can save a shared house several hundred pounds over a year.

From 1 July 2026, Ofgem’s energy price cap rises 13% to £1,862 a year for a typical dual-fuel household paying by Direct Debit. Students typically use less than this, so your real bill is usually lower, but the unit rates still apply to whatever you use.

• Households where everyone is a full-time student are exempt from council tax (GOV.UK).
• You can choose your own energy supplier as a tenant, even if the landlord set one up.
• Put the bill in all housemates’ names so you share legal responsibility equally.
• Fixed tariffs below the July 2026 cap exist, so comparing can beat the default rate.

How much do gas and electricity cost students per month?

Most student houses pay between £40 and £80 per person per month for gas and electricity, depending on house size, insulation and how much energy you use. Students tend to be lower users than the national average, so the headline price cap figure usually overstates a typical student bill.

Ofgem’s price cap from 1 July 2026 sets average unit rates (including 5% VAT) for Direct Debit customers at 26.11p per kWh for electricity with a 57.19p daily standing charge, and 7.33p per kWh for gas with a 29.04p daily standing charge. The cap caps unit rates, not your total bill, so if you use more, you pay more.

Gas bills are rising faster than electricity in 2026. Ofgem confirmed that from July 2026 electricity bills rise around 5% while gas bills rise about 24%, driven by higher wholesale gas prices. A well-insulated flat with a couple of careful students could pay far less than a draughty five-bed house.

Do students pay council tax on top of energy bills?

Households where everyone is a full-time student do not pay council tax at all, according to GOV.UK. This is separate from your energy bills, but it is one of the biggest savings students miss, so claim it as soon as you move in.

To count as a full-time student for council tax, Citizens Advice says your course must last at least one calendar or academic year, run for at least 24 weeks a year, and normally involve at least 21 hours of study or work experience a week during term time. Full-time master’s students are treated the same as undergraduates and are also exempt.

• All full-time students in the house: 100% exempt, but you must apply with a council tax exemption certificate from your university.
• Living in university halls: already exempt, no application needed.
• Sharing with one employed person: they usually pay 75% of the bill (a 25% single-person discount applies, as students are disregarded).
• Sharing with two or more non-students: they are usually liable for the full 100%.

Apply quickly with your exemption certificate to avoid being chased for charges you do not owe.

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Can students switch energy supplier or is it fixed by the landlord?

Students renting privately can switch energy supplier, even if the landlord set up the existing account. As the tenant paying the bills, you have the right to choose your own gas and electricity supplier. The exception is if your tenancy agreement names a specific supplier you must keep, which is unusual.

If your bills are included in your rent, the landlord chooses the supplier and you cannot switch. Always check whether included bills have a usage cap. The University of Liverpool notes that if your consumption goes over a cap in an all-inclusive deal, you are charged the extra.

To switch, you need the name of your current supplier, your tariff and a recent meter reading. You can find out who supplies your house by asking the previous tenants or landlord, checking any paperwork left in the property, or contacting your regional distribution network for gas and electricity.

All-inclusive bills versus sorting your own

All-inclusive student packages bundle gas, electricity, water and broadband into one monthly payment per housemate, often with “unlimited” energy. They remove the work of splitting bills, but they usually carry a markup and fair-use clauses, so they are not always cheaper than doing it yourself.

In a national student survey, 61% of students said their energy bills were included in their rent. That convenience has a price. If everyone in the house is careful with energy, sorting your own supplier and splitting the cost is often cheaper than a packaged “unlimited” deal.

If you do choose a packaged provider, read the small print for the fair-use limit and what happens if you exceed it. Compare the monthly cost against what a similar house typically spends on energy.

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How should housemates split energy bills?

The fairest way to split energy bills is to put the account in every housemate’s name so you are all “jointly and severally liable”, then divide each bill equally. This means everyone shares legal responsibility, rather than one person being chased for missed payments.

MoneyHelper warns that if the bill is only in your name, you alone are liable for late or missed payments, which can affect your credit score. Putting all names on the account protects you. A shared bank account or a simple bill-splitting app can make collecting each person’s share straightforward.

• Read the gas and electricity meters the day you move in and give the numbers to your supplier so you are not charged for the previous tenants’ use.
• Agree a fixed monthly amount each, then settle up if the real bill differs.
• Keep a record of payments so there are no disputes at the end of the tenancy.

For more ways to keep costs down across the house, see our guide to reducing your electricity and gas bills.

Should students choose a fixed or variable tariff?

A fixed tariff locks your unit rates for a set period (usually 12 months), while a variable tariff follows Ofgem’s price cap and can change every three months. For students on a budget, a fixed tariff priced below the cap gives certainty and can save money over a tenancy.

With the price cap rising 13% from July 2026 and forecast to edge up a further 2% in the fourth quarter, fixed deals below the cap can protect you from increases. As of June 2026, some 12-month fixed dual-fuel tariffs were priced a few hundred pounds below the July price cap for typical use, though exact prices depend on your postcode and usage.

Dual fuel means buying gas and electricity from the same supplier on one tariff, which is usually simpler to manage and sometimes cheaper. Look for fixes with no exit fees so you are not locked in if you move out at the end of the academic year.

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How can students cut their energy use?

The fastest way for students to cut energy bills is to reduce usage, since the price cap controls unit rates but not your total spend. Small shared habits add up across a house of four or five people.

• Turn the heating down by a degree or two and use draught excluders on doors and windows.
• Switch off lights and appliances at the wall rather than leaving them on standby.
• Run the washing machine on a cold or eco cycle and only with a full load.
• Use a smart meter, if available, to see what each appliance costs in real time.

If keeping costs low and choosing a greener supplier both matter to you, our green energy guide explains how renewable tariffs work and whether they cost more.

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