Blog Post

Domestic Electricity use soared in the 1st quarter of 2021 new BEIS Data reveals

Richard Simmonds • July 1, 2021

According to the latest BEIS data, the amount of electricity used by domestic consumers jumped 8.9% in the first three months of 2021 as millions of people forced to work from home as a result of Covid-19 lockdowns and restrictions.

A surge in Domestic Demand

The latest official energy usage data published by BEIS highlighted just how much of an impact the pandemic has had on UK energy usage.

As we would expect domestic consumption surged due to the third lockdown imposed by the government. With many people either furloughed or forced to work from home their need for electricity to power their devices for work use and heating surged.

The long bitterly frigid winter also added to the surge in energy usage and put further strain on many household’s energy bills.

The domestic demand for electricity was so high that it was its highest level since the first quarter of 2013 when the UK was hit by another freezing winter.

Also read: Daily Domestic energy usage spikes by 30% at midday, but overall energy usage is down

Non-domestic usage fell

The pandemic hit non-domestic energy usage hard with the industrial and commercial sectors seeing declines of 2.3% and a whopping 18% respectively.

With all non-essential businesses forced to shutter during the lockdowns and with restaurants, shops, offices, and public buildings all closed, demand was naturally subdued.

Overall energy production also fell in the first quarter by 12% as increased maintenance activities curtailed output and thanks to the very wintry conditions and decline in normal production imports of gas reached record high levels.

Renewable generation as a whole fell due to the unfavourable conditions for wind. 2020 saw wind generation records broke due to several major storms but in 2021 the first part of the year saw bitterly cold temperatures and extended periods of still weather that resulted in wind generation falling by 20%.

The data also shows that the total final energy consumption was down 7.4% on the previous year.

The Covid-19 pandemic and lockdowns massively impacted energy consumption with transport consumption falling by 31%, service sector consumption falling 4.6% and industrial consumption falling by 2.1%. Air travel remains hugely subdued due to ongoing restrictions in many nations.

On a seasonally and temperature adjusted basis, final energy consumption fell by 13%, with falls in all sectors.

Also read: 65% of domestic UK energy customers are now supplied by Green Energy Suppliers

Post lockdown recovery?

With Covid restrictions being eased and with the end (hopefully) in sight energy consumption has staged a slight comeback in the second quarter of 2021. Industry and commercial businesses are reopening but it remains to be seen how many offices will choose to bring their staff back in now that know they can operate remotely.

Wholesale energy prices have surged higher in the wake of the lockdown easing and now concerns are being raised over the impact of heightened domestic use on energy bills.

Several energy suppliers have already raised their prices with many more looking likely to follow suit over the coming months with some analysts predicting that Ofgem will be forced to raise the energy price cap in October.

Also read: Energy Price Forecast Winter 2021: Covid-19 aftermath, harsh weather and low supplies all point to rising Energy Bills

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