Why Is My Energy Bill Higher Than My Neighbour’s?

Why Is My Energy Bill Higher Than My Neighbour’s?


Your energy bill is higher than your neighbour’s because your home uses energy differently, even if the houses look the same and use the same supplier.

Small differences in heating, insulation, tariffs, and daily habits can lead to big cost gaps.


The Most Common Reasons (In Order of Impact)

 

1. Heating Use (The Biggest Difference)

Heating is the largest part of most UK energy bills.

Your bill will be higher if you:

  • Heat your home for longer hours

  • Set the thermostat higher

  • Heat rooms you don’t use

  • Work from home more often

Even 1–2°C higher can noticeably increase costs.


2. Insulation and Heat Loss

Two similar homes can perform very differently.

Your neighbour may have:

  • Better loft insulation

  • Cavity wall insulation

  • Fewer draughts

If heat escapes faster in your home, your boiler has to work harder.


3. Different Energy Tariffs

You might be on:

  • A standard variable tariff

  • A tariff with high standing charges

Your neighbour could be on a cheaper fixed or off-peak tariff  even with the same supplier.


4. Home Size and Layout

Bills are affected by:

  • Floor area

  • Ceiling height

  • Number of external walls

End-terrace and detached homes usually cost more to heat than mid-terrace homes.


5. Hot Water and Appliance Use

Your bill may be higher if you:

  • Take longer or more frequent showers

  • Use hot water often

  • Have older, inefficient appliances

  • Leave devices on standby

These costs add up quietly.


How to Check What’s Causing the Difference

Ask yourself:

  • Do I heat my home longer or warmer?

  • Is my home well insulated?

  • Am I on the cheapest tariff available to me?

  • Is my bill based on actual readings or estimates?

This usually reveals the answer quickly.


What You Can Do About It

Focus on high-impact fixes:

  • Lower the thermostat slightly

  • Use heating timers or smart controls

  • Stop draughts and heat loss

  • Check your tariff and standing charges

  • Submit regular meter readings

You don’t need to match your neighbour  just reduce waste.


Final Verdict

Energy bills aren’t a competition.

Two neighbours can live very differently in similar homes, and small habits create big bill differences.


Key Takeaway

If your energy bill is higher than your neighbour’s,
it’s usually about how energy is used  not a billing mistake.

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