The energy bill price cap was raised by 54% in April due to rising wholesale gas prices, leaving families across Britain to shell out £700 more on energy costs. Now, with another price cap hike looking even more likely in October, many are looking to other energy sources to cut costs.
The price cap in October is set to rise a further 24%, adding another £400 to the Briton’s already soaring bills.
Amid soaring fuel prices, inflation rates and tax increases, many are feeling the financial pinch and it’s no surprise that households are looking for ways to reduce the cost of living.
Naturally, one of the most popular searches is how to reduce electricity bills, including other ways to heat the house.
You can heat the house from two different fuels, gas or electric. But which of the two is cheaper to operate?
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Is gas or electricity cheaper?
Determining which fuel is the cheapest can be tricky and depends on several factors; what type of gas, how big is your house, etc.
But if you look at the average cost of each fuel per kilowatt hour (kWh), gas comes out on top.
According to British Gas, the electricity unit rate is currently 28.34 pence per kWh plus a permanent charge of 45.34 pence per day, while the gas unit rate is 7.37 pence per kWh with a charge. permanent 27.22 pence per day.
However, this does not guarantee that you will save money by switching to gas, as the overall running, maintenance and installation costs would likely exceed what it would cost to supply electricity to the house.
Comparison site lookaftermybills.com said: “Gas power is much cheaper to run than electricity on a regular basis, but the overall installation, maintenance and running costs tend to favor electricity. electricity, the average lifespan of products also exceeding that of gas. ”
The typical cost of installing a gas central heating system, including boilers, radiators, controls and pipes, can range from £3,000 to over £4,500, according to EDF Energy.
While low cost electric heating is much cheaper, with installation prices starting at £20.
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This is not the case for gas or an oil-fired central heating system because according to EDF, even an A-rated boiler wastes around 10% of the energy of its fuel.
All the while, only a small amount of electricity is needed to run a boiler.
Therefore, electricity seems to have much more value for money than a gas system.