Less expensive to operate: Almost everywhere in the country, natural gas is significantly cheaper than electricity. If you live in a cold climate and run your heater a lot during the winter, a gas furnace can save you money over the long run.
Electricity is more expensive per unit than natural gas, making the lifetime cost higher than gas heating. Electric heating takes more time. The heat from your furnace won't reach the high temperatures of a gas furnace.
If you want fast results, gas is your choice. Generally, the gas units heat up the home faster than electric, and they tend to be more efficient in really cold temperatures because gas systems will achieve a higher temperature than electric units in extreme temperatures.
What's cheaper, gas or electricity? Gas energy is much cheaper to run than electricity on a regular basis, but the overall costs of installation, maintenance and running expenses tend to favour electricity, with the average lifetime of products also outlasting that of gas.
Gas is generally much the cheapest form of heating, but its cost depends on a number of factors, including your supplier, tariff and boiler.
Experts predict that gas prices could rise a further 30% in 2022. They forecast it will be an unprecedented time for the domestic energy market, which customers will feel in the rising costs of their bills. Want to stay toasty warm this Winter, and keep your bills down?
This was because gas and electricity prices went up around the world and it cost energy suppliers more to get gas and electricity to you. On 1 April 2022, the energy price cap will rise again by 54% as the cost for wholesale gas and electricity continues to soar.
Electric heaters are generally considered to be more expensive to run than gas as the average price of electricity per hour is usually higher than gas. Off-peak electricity tariffs can also bring the costs up depending on your electricity provider.
The average gas bill for a 3-bed house
Typically, a 3-bed house would cost £840 per year or £70 per month. This is based on the average cost of gas being around 7p per kWh. The size of the house will also have a big impact on how much you're paying each month.
Gas is a more efficient heating fuel than electricity, so if you're using gas, you're automatically making the ecologically friendly choice.
Market forces can cause the wholesale price of gas to rise or fall which then has a knock-on effect on energy bills. This is why prices rose twice in 2021 and will probably rise twice in 2022 - you can find more details here.
Gas is much less expensive than electricity at the moment, whether on or off-peak, according to the Energy Saving Trust. The trust estimates that gas costs around 7.4p per kWh, while off-peak electricity is more than double at 16.4p and on-peak double again at 34.1 percent.
If you do have a 'time of use' electricity tariff, it will operate on-peak and off-peak times, with electricity cheaper at night. What counts as peak and off peak can vary depending on your provider, where you live, and the time of year.
The rate is set by Ofgem, the energy regulator, and is reviewed twice a year. The price cap is currently in the spotlight because Ofgem announced a record increase of 54% on 3 February 2022, which came into effect on 1 April 2022. The new cap level for average use dual fuel customers is £1,971.
Households are facing a steep increase in their energy prices due to supply and demand on the global wholesale market. This has driven up the amount providers pay for gas and electricity - and that cost is now being passed onto the consumer.
Check if you can use less electricity and gas
run your washing machine at 30 degrees and make sure you wash a full load when you can. use LED or other energy-efficient light bulbs. turn off plug sockets at the wall if you're not using them. close your curtains in the evening to keep in heat when it's cold.
Immersion heaters use electricity to heat water, which is considerably more expensive than gas. For example, 1 kW of gas will cost you around 4p, while 1 kW of electricity will cost around 15p. That means a 6 kW immersion heater would cost 90p an hour to operate, substantially more than operating a gas combi boiler.
In a nutshell, it depends how much of your home you want to heat. Overall, for heating the same space, an electric heater costs more than twice as much as using central heating. However, electric radiators can be more cost effective if you're heating a small area of your house like one or two rooms.
The best bedroom temperature for sleep is approximately 65 degrees Fahrenheit (18.3 degrees Celsius). This may vary by a few degrees from person to person, but most doctors recommend keeping the thermostat set between 60 to 67 degrees Fahrenheit (15.6 to 19.4 degrees Celsius) for the most comfortable sleep.
Electric radiators are 100% efficient when it comes to transforming electrical energy to heat. In comparison, gas come in at 90%. So the most efficient heating system is electric. Yet, mains gas provides the most cost-effective heating.
Cost comparison between gas and electric heating
The unit cost of gas heating is cheaper than electric, at 4.65p/kWh, vs 16p/kWh for electricity. However, the average cost to install a gas central heating system is around £5,250, compared with £3,790 to install an electric heating system.
The cost of electricity and gas in the UK
*Energy Saving Trust updated these figures in November 2021, and used them to project fuel prices for 2022. As you can see from the table, electricity is nearly three times as expensive as gas.