Ofgem, the energy market’s regulator originally recognized energy usage groups, which meant customers, were classified by the amount of energy they consume. Energy suppliers now categorize their customers by these groups, which mean we all belong to one. The categories are usually low, medium (average) and high users.
Energy tariffs are aimed at customers depending on their energy usage group, because a great deal for a low user for instance would not benefit a high user. And crucially the price will vary accordingly. Because energy usage groups play a vital role in determining your best energy tariff and how much you will pay, it is useful to understand which one you are in.
Our article covers the three energy usage groups, and should give you a good an indication of where you lie, however for an accurate picture you will need to know the exact amount of kilowatt hours (kWhs) of gas and electricity you use. This information can usually be found on your energy bill, or for those with a Smart Meter, where this information is available in real time, it is even easier to find.
There are also other factors to consider, like your home circumstances which may well change. For instance more family members; you may have children, or grandparents moving in. These will affect your energy usage group because you will no doubt need more.
As the names suggest, the three energy usage groups are based on the degree of energy consumed. So let’s review them.
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Low Energy Users
To be in this category, you are likely to use on average 1,650 kHws of electricity and 10,000 kWhs of gas per year. Low energy users tend to live in smaller homes, perhaps a couple in a one or two bedroom house or flat. This category is also associated with those who are most energy conscious, and perhaps are economical with their appliances. Other factors include those who may not be in the house for long periods during the day, maybe working away.
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Medium (Average) Energy Users
Here you are using on average 3,300 kWhs of electricity and 20,500 kWhs of gas per year. Energy suppliers tend to target this group the most with their best energy tariffs. This category is the typical family home, of a three bedroom middle sized house, with working parents, and perhaps children at school. The main energy consumption usually takes place in the evenings and at weekends.
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High Energy Users
Customers in this group use on average 4,950 kWhs of electricity and 28,000 kWhs of gas each year. This will be a large household with four or more bedrooms. There will be more than one bathroom, and typically multiple televisions and other electrical appliances being used at the same time. Energy usage is therefore the highest.
It is important to bear in mind these energy usage groups will vary according to the circumstances of your household, and of course how energy efficient you are. For instance, it could be that you live in a medium sized home, but are a low user because you have made home improvements to save the amount of energy you use, like home insulation.
Energy usage varies from one household to the next, which often means finding the best energy tariff can be difficult. Price comparison websites like Confused.com and Uswitch.com will help you with this.
Now you have an understanding of energy usage groups, it is worth trying to cut the amount you use. This is always a good idea regardless of the category you are in, because it will save you money and is kinder to the planet. Read our article 5 Cheap Ways Of Saving Energy And Money for some pointers.
Sources:
http://www.confused.com/guides/household/energy/gas-and-electricity-your-energy-usage-group-175052226
http://www.ofgem.gov.uk/CustomPages/Pages/Results.aspx?k=energy%20usage%20groups
