Homes in these cities have the highest utility bills – is your area on the list?

There are a number of reasons why some cities pay more than others...

illustration of lightbulb on pink background
(Image credit: Future PLC / Lizzie Orme)

We're all experiencing rising energy costs at the moment, but according to new research, it seems bills are rising to higher rates in certain cities across the UK. 

Ahead of the predicted 20% rise in energy prices in April, due to the energy price cap, experts over at Solar Panel Installation analysed the average cost of utility bills in major cities across the UK, including energy, gas, and water bills. 

They ranked the 10 cities where households are paying the most for their utility bills – and the city that came out on top may not surprise you! So is your area on the list?

The cities with the highest utility bills

Georgian townhouse exterior with black and white windows, black front door and sage green front door

(Image credit: Future PLC)

In a surprise to no one, London has landed itself in the top spot for utility bills according to the companies research, with people paying an average of £3,221.04 a year – which adds up to whopping £268.42 per month.

So which cities took second and third place? Landing just after London is the city of Coventry, in the West Midlands. Households in this location pay £3,044.40 a month according to Solar Panel Installation; a slight decrease of £176.64 compared to the top-paying city.

Leeds is in third, with people in this city paying £2,908.32 on their bills annually, which results in a £242.36 payment monthly.

With a lead in the north for the top three cities, there are an equal amount of southern and northern cities rounding out the final seven places on the list – here is what households pay annually, on average:

  1. Bristol – £2,779.92
  2. Southhampton – £2,762.40
  3. Derby – £2,753. 52
  4. Sheffield – £2,743.20
  5. Plymouth – £2,685
  6. Exeter – £2,641.44
  7. Manchester – £2,604.48

So why might you be paying more in a certain city when it comes to utility bills? According to Rob Salter, energy expert and founder of Solar Advice, it's actually somewhat of a postcode lottery.

He explained to us, 'The price of utilities can vary depending on where you live in the UK. This is mainly dictated by the energy supplier in your region, who controls the tariffs they offer to customers.

'The major factors that can influence the cost of energy in certain regions are the amount of energy an energy company sells within a region, how much they are charged to buy energy, as well as the local charges to the energy company from the distribution network within a certain region.'

smart meter on kitchen shelf

(Image credit: Smart Energy GB)

Prices also depend on how much it costs for energy suppliers to purchase the actual energy.

'Another factor is how much they are charged for the energy per region. For example, in Scotland energy tends to be cheaper for energy suppliers to purchase since it is closer to Scotland’s large natural supply of oil and gas,' Rob said.

But that's not all – supply and demand also plays a part, he says, which explains why London-dwellers (in a city which has some of the highest energy usage in the country), pay the most for their utilities.

So did your city make it onto the list – or are you one of the lucky one who isn't in the top 10 list for the highest utility bills?


 Amy Hunt is an experienced digital journalist and editor, now working in a freelance capacity specialising in homes and interiors, wellness, travel and careers. She was previously Lifestyle Editor at woman&home, overseeing the homes, books and features sections of the website. Having worked in the industry for over eight years, she has contributed to a range of publications including Ideal Home, Livingetc, T3,Goodto, Woman, Woman’s Own, and Red magazine