UK household electricity bills are among the highest in Europe, according to recent data from the Department for Energy Security and Net Zero. In 2025, UK customers paid an average of £29.70 per kilowatt-hour (kWh) for electricity, which is more than countries like France (£22.41), Sweden (£22.99), and the Netherlands (£21.22). However, some countries, including Germany and Ireland, had even higher prices. It’s important to note that this data only compares the cost per unit of electricity and does not reflect total household energy bills, which depend on how much energy a household uses overall.
The energy price cap, which limits how much suppliers can charge households in England, Scotland, and Wales, is set to rise by 4 per cent from October 1. This increase will add about £60 to the average annual bill for a typical household using both electricity and gas, bringing the total to £1,723 per year. This would be the highest average bill since July 2023, marking a 58 per cent increase compared to the winter of 2021/22. The rise is driven by higher wholesale energy prices and the ongoing cost of maintaining and upgrading the national energy grid.
According to the National Audit Office (NAO), a typical household will pay £44 towards grid construction and maintenance in the 2025/2026 financial year. This cost is expected to rise to £104 by March 2031. To support the transition to renewable energy and ensure reliable power supply, up to £70 billion in investment is needed over the next five years to upgrade the transmission network. While these investments are costly, energy regulator Ofgem estimates that households could save £30 per year by 2031, based on projected changes in wholesale electricity prices and the costs of balancing the grid.
The recent rise in energy bills is also being influenced by external factors, such as the ongoing conflict in the Middle East, which has disrupted global energy markets and driven up wholesale prices. Additionally, heatwaves across Europe have increased the demand for gas used in power generation to meet the need for air conditioning and cooling. These factors, combined with the need to modernize the energy infrastructure, contribute to the current high energy costs faced by UK households.
UK Household Energy Bills Among Highest in Europe, Data Shows
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