Therm (EC) to Therm (US)

The EC therm is defined as exactly 105,505,600 joules; the US therm is 105,480,400 joules — a difference of 25,200 J (about 0.024%). The discrepancy arose from slightly different historical BTU definitions. For residential gas billing the difference is negligible, but in large-scale energy trading involving millions of therms, the distinction can affect settlement amounts.

The UK Gas Act 1995 mandated a switch from therms to kWh as part of broader metrication. One therm (EC) equals 29.3071 kWh. The change aligned gas billing with electricity billing, making it easier for consumers to compare energy costs. Older UK customers and industry veterans still refer to therms colloquially, and wholesale gas markets continued using therms for years after the retail switch.

A typical UK home uses 500–800 therms (EC) per year for heating and hot water, equivalent to roughly 14,700–23,400 kWh. Well-insulated newer homes may use under 400 therms, while large Victorian houses with poor insulation can exceed 1,200 therms. Ofgem's energy price cap is set in pence per kWh, but converting back to therms gives about £2.50–£3.50 per therm at recent rates.

One cubic meter of UK pipeline-quality natural gas contains roughly 38.5–39.5 MJ, which is about 0.365–0.374 therms (EC). Gas meters measure volume in cubic meters, and the utility applies a calorific value correction to convert to kWh (or therms). The correction factor varies by region and season because gas composition changes depending on the source field.

The therm (EC) was once the standard trading unit on the UK's NBP (National Balancing Point) gas market. In 2020, the ICE exchange switched NBP contracts from pence per therm to pence per kWh. Continental European hubs like TTF have always traded in euros per MWh. The therm is fading from professional use but remains in legacy contracts and older billing systems.

Residential US natural gas prices typically range from $0.80 to $2.50 per therm depending on region, season, and utility. The wholesale Henry Hub benchmark translates to about $0.25 per therm at $2.50/MMBtu. Delivery charges, taxes, and utility markups roughly triple or quadruple the commodity cost by the time it reaches a home meter.

The average US home using gas for heating consumes about 500–900 therms per year, depending on climate, insulation, and home size. Homes in mild climates like Southern California may use under 300 therms; homes in Minnesota or Wisconsin can exceed 1,200 therms. Gas water heaters alone account for roughly 150–250 therms per year.

One US therm equals exactly 100,000 BTU, while one MMBtu (million BTU) equals 1,000,000 BTU — so 1 MMBtu equals 10 therms. Wholesale gas markets and pipeline contracts use MMBtu; residential utility bills use therms. The two are straightforward to convert, but confusing them by a factor of ten is a common mistake in energy cost comparisons.

Retail billing in therms gives homeowners manageable numbers — a winter month might be 80–120 therms at $1–2 each. Wholesale pipeline contracts deal in millions of BTU (MMBtu) because the volumes are enormous and the industry standardized on BTU-based pricing in the early 20th century. One MMBtu equals 10 therms, so converting is simple. The Henry Hub benchmark price of $2.50/MMBtu translates to about $0.25/therm before delivery charges, taxes, and utility markup roughly quadruple it at the meter.

A typical US residential furnace rated at 80,000–100,000 BTU/h uses about 0.8–1.0 therms per hour at full output. High-efficiency condensing furnaces (95%+ AFUE) extract more heat per therm, so they cycle less often. On a cold winter day, a furnace might run 8–12 hours total, consuming 6–10 therms. That translates to roughly $5–$25 per day depending on local gas prices.