The fuel prices used to calculate Energy Performance Certificates (EPCs) were updated in January 2023, with increases to all fuels including mains gas and electricity, the accreditation body Elmhurst Energy reported on 12 January 20231.
The estimated yearly energy costs shown on an EPC are derived from fuel prices averaged over a three year period and changed on a six monthly cycle1. The January update raised mains gas from 3.63p per kWh in 2022 to 4.26p per kWh in 2023, and standard tariff electricity from 19.22p per kWh to 22.55p per kWh1.
| Fuel | 2022 | 2023 |
|---|---|---|
| Main gas | 3.63p/kWh | 4.26p/kWh |
| Electricity (standard tariff) | 19.22p/kWh | 22.55p/kWh |
Those figures remain well below the levels set by the government's price guarantee from October 2022, which Elmhurst said saw mains gas jump to 10p per kWh, a 57% difference, and standard tariff electricity rise to 34p per kWh, a difference of 33%1. The energy efficiency rating, the A to G scale, is based on fuel prices that are fixed and change only when the overarching methodology for the EPC changes1.
Elmhurst said it had raised the issue with government and highlighted that stakeholders are questioning the credibility of the EPC1. Its head of operations, Josh Wakeling, said:
"Over the last 12 months we have seen a significant increase in the number of homeowners contacting our support teams raising their concerns over the validity of their EPC. In some instances rightly stating that the estimated costs are a third of what they are currently paying. We know that this is a complex issue to solve but if government are building policies around the EPC the fuel costs must be brought in line with what is happening in the real world."
EPCs for homes were first introduced in England and Wales in 2007 as a cost metric, and the A to G rating shows only how cheap or expensive a home might be to run1. Elmhurst has campaigned for a redesign, arguing an EPC should clearly show energy consumption, energy cost and carbon emissions1.
Why it matters for households
An EPC's running cost estimate is one of the figures a household sees when buying, renting or improving a home, and it feeds the EPC statistics that describe the housing stock. Because the estimate is built on a three year average rather than current prices, it can sit well below what a household is actually paying, which is the gap Elmhurst describes. The rating itself is fixed to a separate set of prices, so a home's A to G band does not move when fuel prices move. For energy independence, the practical point is that a certificate's cost figure is a modelled number on a lagging basis, not a bill, and the measured versus modelled home energy performance gap is wider when prices are volatile. Wider context on how prices reach households sits in wholesale gas and electricity prices and why bills change and UK domestic energy prices over time.
What happens next
The EPC fuel prices change on a six monthly cycle, so the next update falls six months after January 20231. Elmhurst said it has raised the issue with government and is campaigning for an overall redesign of the EPC, but no date or commitment from government has been reported1.
Sources1 cited
- Fuel prices still not reflecting reality - Elmhurst Energy, elmhurstenergy.co.uk