Compare Energy Prices per kWh

UK energy bills continue to differ, so it’s even more important to be aware of what you’re paying for each unit of energy that you use. Within each home bill, there are two significant charges: the standing charge and the unit price per kilowatt-hour (kWh).

By comparing them, you can immediately find out whether your current deal is competitive or whether you’d save money by switching. With Simply Switch, it’s easy to compare energy prices per kWh for your postcode and find cheaper electricity and gas rates in your area.

Compare energy prices per kWh for your postcode »

What Does Energy Cost per kWh Mean?

A kilowatt-hour (kWh) is a measure of energy used to calculate your electricity and gas bills. One kWh equals the use of 1,000 watts for one hour. For example, running a 1,000W electric heater for one hour uses 1kWh of electricity.

Your energy supplier charges you in two ways:

  • Unit rate (pence per kWh): the cost of each kWh of energy you consume.
  • Standing charge (pence per day): a fixed daily charge that keeps your home connected to the grid.

You need to compare both figures when looking at energy tariffs. A low unit rate won’t always mean a lower-priced bill if the standing charge is exorbitant.

Average Electricity Price per kWh in the UK

As per the latest Ofgem statistics, the average price of electricity per kWh in the UK is around 26.35p, but the exact rate varies by region and supplier. Electricity cost is variable according to regional infrastructure and local network costs.

Payment Method Avg Unit Rate (p/kWh) Avg Standing Charge (p/day)
Direct Debit 26.35p 53.37p
Standard Credit 27.35p 58.83p
Prepayment 26.04p 53.64p

There may be some variation in price among suppliers, but the trend is always the same: some areas pay more due to having more costly distribution.

Average Gas Price per kWh in the UK

The average gas price per kWh in the UK is approximately 6.29p, which is significantly less compared to electricity per unit. Even though households tend to use more gas for heating and hot water, the total bill can still be considerable.

Payment Method Avg Unit Rate (p/kWh) Avg Standing Charge (p/day)
Direct Debit 6.29p 29.62p
Standard Credit 6.65p 33.64p
Prepayment 6.09p 32.22p

Gas standing charges also differ slightly by supplier and postcode.

The Effect of Standing Charges on Your Energy Bill

A standing charge is a fixed daily fee you pay regardless of your energy usage. It covers obligatory costs such as the upkeep of meters, upkeep of the supply infrastructure, and administration fees.

For example, a standing charge of 60p per day adds up to roughly £219 per year. Even if your energy use is minimal, this charge stays constant.

That’s why it’s vital to consider both the unit rate and standing charge when comparing energy prices per kWh. Sometimes, a tariff with a slightly higher unit rate but a lower standing charge may work out cheaper overall.

Energy Prices by Tariff Type

Energy tariffs vary by the way rates are organised. Understanding each type can help you choose the right one for your consumption habits.

  • Fixed Tariff: Standing charge and unit rate are set for an agreed period (typically 12–24 months). Ideal for budgeting and not having to fear short-term price increases.
  • Variable Tariff: Prices change in relation to Ofgem’s energy price cap and market movements. Rates may go down or up over a year.
  • Prepayment Tariff: Pay-as-you-go through a meter or top-up card. Typically, more expensive per kWh but offers flexibility for some households.
  • Economy 7 / Time-of-Use Tariffs: Offer cheaper electricity at night or off-peak hours, suitable for households that can transfer usage to those times.

How to Compare Energy Prices per kWh

To find the cheapest energy tariff in the UK, enter your postcode and (if possible) your typical annual usage on the Simply Switch comparison tool. You’ll receive live results showing:

  • Electricity and gas unit rates (p/kWh)
  • Standing charges (p/day)
  • Estimated annual cost
  • Potential yearly savings

When comparing tariffs, always check the total estimated cost, not just the per-kWh rate. A lower standing charge or a better tariff structure could reduce your annual spend significantly.

Compare now to see your best energy prices per kWh »

Check If You’re Paying Too Much per kWh

Being aware of your unit rate and standing charge is the key to staying on top of bills and not overpaying. Whether you’re on a fixed, variable, or prepayment tariff, regularly checking rates ensures you won’t be left on an expensive tariff.

Compare the cost of energy per kWh today with Simply Switch and see how much you can save on every unit of energy that you use.

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FAQs – Energy Price Comparison per kWh

What is a good UK electricity price per kWh?

A price of around or below 26p per kWh is generally competitive, but the best price depends on your supplier and area.

How often does the energy price cap change?

The Ofgem energy price cap is reassessed every three months, so rates can increase or decrease every quarter.

Why are energy prices different in each region?

Variations in local network and distribution costs result in unit charges and standing charges differing throughout the UK.

Do all suppliers have the same standing charges?

No. Some energy providers have lower unit charges but higher standing charges, so be sure to compare both when switching.

How do I reduce my energy rates per kWh?

Improve home insulation, use LED bulbs, manage heating efficiently, and switch to a tariff that reflects your usage pattern.