High prices drive UK household energy demand to lowest levels in 50 years

Household energy demand in the UK last year fell to levels last seen in the early 1970s by 15% year on year, driven by record high prices and milder temperatures, according to figures from the Department for Energy Security and Net Zero on Thursday.

The data showed that reduced manufacturing output in 2022 resulted in a 6.7% decrease in industrial energy demand.

Significant falls both in domestic and industrial energy consumption, at 12% and 7.2%, respectively, in the last quarter of 2022 accelerated the record decreases.

Along with milder temperatures last year, changes in consumer behavior arising from higher energy prices were the main drivers of the falling demand.

Gas demand in the UK fell by 7.5% in 2022 compared to the previous year, down by 65 terawatt-hours to 799 terawatt-hours.

Similarly, household gas demand was down 19% and industrial gas demand by 8.2%, with both reaching lows not seen since the 1970s.

The country’s electricity consumption also dropped by 3.9% in 2022 compared to 2021, totaling 273 terawatt-hours.

Domestic electricity demand decreased by 5.9% to a level last seen in the mid-1990s as a result of record high temperatures and increasing energy prices.

Gas prices started to increase in mid-2021 as a result of the economic recovery following the impacts of COVID-19, leading to a supply-demand imbalance. After Russia’s war in Ukraine, prices skyrocketed due to tighter supplies, with Europe suffering the most from record high prices.

• Department for Energy Security and Net Zero