What’s the cost of electricity per kWh right now?

• Electricity usage is measured in kilowatt-hours (kWh)
• Electricity currently costs 24.86 p per kWh
• The Energy Price Cap determines the maximum cost of domestic energy
• Ofgem announced energy prices for April-June this year on 25th Feb
• Solar panels will reduce your energy bills by 70% on average (according to the Energy Saving Trust)

The cost of electricity per kWh changes every three to six months, which is in line with Ofgem’s price cap announcements.

Your electricity bills will be based on how much you use, which you’ll pay through Direct Debit every month or year, or using a pre-payment meter, and capped by the Energy Price Cap – the maximum amount energy suppliers can charge consumers on default tariffs for each unit of energy and standing charge, which currently stands at £1849 per year.

Ofgem’s next Energy Price Cap announcement will be in May 2025 for the July to September price cap level.

In this guide we will explain everything you need to know about the cost of electricity per kWh and how Ofgem’s price cap impacts households, which can help you decide whether renewable energy is worth the investment. 

How much does electricity cost per kWh?

The current cost of electricity is 24.86p per kWh, which is valid until 31st March.

As per its announcement on 25th February, the price of electricity will increase from 1st April until the 30th June 2025 to 27.03p per kWh.

Below is the average price for energy if you pay by Direct Debit over the last three quarters. However, this price can vary slightly depending on how you pay and where you live.

*Data courtesy of Ofgem

How has the Energy Price Cap changed?

As reported by Ofgem, between the 1st of January and 31 March 2025, the energy price cap has been set at £1,738 per year for a typical household.

Between the 1st of April and the 30th of June 2025, Ofgem has confirmed that the energy price cap will increase by 6.4% to £1,849 per year.

You can check Ofgem’s handy guide to find out more about average gas and electricity usage.

Here’s how the Energy Price Cap has changed since it was introduced in 2019:

Electricity cost per kWh per region

As mentioned above, the average cost of electricity varies by region and changes every three months once Ofgem announces a new price cap. 

As of February 2025, the regional price cap for those who pay by Direct Debit and a single rate:

*Data courtesy of Ofgem

If you pay different prices for the used electricity at different times of day, also known as a multi-rate and includes Economy 7 meters, this is what you’ll pay under the cap if you pay by Direct Debit:

*Data courtesy of Ofgem

What are standing charges?

A standing charge is a fixed daily fee that appears on your energy bills each month. These charges are applied to cover the costs of things like maintaining the energy supply network, meter readings, and other services. 

Standing charges apply irrespective of how much energy you use, and are even applied if a building is empty and not consuming any energy.

Part of these charges include levies raised by the government to pay for initiatives like helping vulnerable households and reducing carbon emissions.

Electricity costs for different ways to pay

The cost of electricity varies based on how you pay and what type of tariff you are on. There are four types of tariffs:

• Standard variable tariff, or ‘default tariff,’ means the price of energy changes every time the price cap changes, usually every 3 months. You can also pay on receipt of a bill in the mail, which comes every three months
• A prepayment meter is a pay-as-you-go, where you top up your meter using a prepayment card purchased at various locations or online.
• People with fixed-rate tariffs will continue to pay the electricity cost they’ve agreed to pay until the end of their contract.
• Economy 7, or multi-rate, is an electricity tariff offering cheaper rates for off-peak hours and more expensive rates during peak hours.

Everyone must also pay a standing charge, which is a fixed daily amount you have to pay for energy, no matter how much you use.

How much have electricity prices increased over the past decade?

The price of electricity has steadily increased over the past decade, but the war in Ukraine has put extra strain on the energy market.

As the percentage of the UK’s electricity from renewables increases, electricity prices could become more stable.

Geopolitical crises like the war in Ukraine don’t affect electricity from UK renewables, which can make energy prices shoot up.

However, some renewables, such as solar and wind, are weather-dependent, so electricity prices could increase or decrease in the future depending on the weather. That’s why having electricity from a mix of different renewables is important.

To better understand how much electricity prices have increased over the past decades, check out the graph below.

How is energy cost determined in the UK?

The energy price cap largely determines the cost of domestic energy in the UK. 

The UK’s energy price cap and Energy Price Guarantee set a maximum price that energy suppliers can charge the average consumer for each kWh of energy they use. These ensure that prices for customers on default energy tariffs are fair. 

The price cap is set by Ofgem, the government’s energy regulator, and it changes every three months. 

It’s calculated using Typical Domestic Consumption Values (TDCVs) which give consumers an idea of the average energy use of different households. 

Even though the price cap is given as a set number, that number represents what the average household will pay. 

It’s not a set upper limit, and some people will pay less and some more, based on how much electricity they use – those who use less than the average household will pay less than the cap, and those who use more will pay more. 

The price cap also varies slightly by region, so the figures Ofgem releases at the start of each new price cap period are just averages. 

What is a kWh?

A kilowatt-hour, kWh for short, is used to measure the amount of energy someone is using. You’ll most likely have seen it on your energy bills, as electricity providers charge customers based on how much electricity they use per kWh. 

For example, one kWh of electricity is enough to power a 100-watt lightbulb for 10 hours. 

Some might get kW and kWh mixed up, but they are different. A kW measures how much power an electric appliance consumes, while a kWh measures the energy an appliance has consumed over a period of time.

You can liken the two to looking at the speed of your car for a single moment (let’s say you’re doing 30 mph) and the total distance you’ve traveled over, say, an hour. The former (kW) is like your current speed, and the latter (kWh) is the total distance (total consumption) you’ve covered.

What is typical domestic consumption?

Ofgem determines how much energy the typical household uses by looking at historical averages. 

They consider different types of meters and high and low energy use to come up with the current average. Your actual consumption might be higher or lower than the estimates Ofgem gives. 

Ofgem’s average values are then used to estimate the annual amount charged to a typical household that pays by Direct Debit and is on a standard variable tariff. 

Courtesy of Ofgem.

What energy bill support is available? 

There are various government-backed schemes available to help some UK customers manage their energy bills, including: 

• Warm Home Discount: some low-income households or those on the Guarantee Credit element of Pension Credit can get £150 off their energy bills for winter 2024-2025
• Winter Fuel Payment: people born on or before 23 September 1958 can get between £200 and £300 to help pay their energy bills
• Cold Weather Payment: £25 for each 7 days of very cold weather (zero degrees Celsius or below) between November 2024 and March 2025. Available for people on certain benefits
• Child Winter Heating Payment: available to families in Scotland with disabled children. The payment for winter 2024-2025 is £251.50

Ofgem also requires energy suppliers to provide customers with a payment plan they can afford if they’re unable to pay their bills. All you have to do is contact them.

If you still can’t agree with your supplier, you can contact Citizens Advice or Advice Direct Scotland if you live in Scotland.

What can I do to reduce my energy costs?

There are also small changes you can make straight away to reduce your monthly bills. These include:

• Low-energy LED lighting: The average household has around 34 light bulbs, each using energy, and will spend about £77 on lighting each year. LED lighting uses 75% less energy than halogen lightbulbs, reducing the demand for electricity
• Check your appliances: When buying new appliances, choose energy-efficient appliances. According to the Energy Saving Trust, cooking, cooling or freezing and wet appliances (such as washing machines, dish washers, etc.) account for 13% of an average household’s energy consumption
• Switch to solar energy: Solar energy can save you between hundreds and thousands of pounds per year on your energy bills while reducing your carbon emissions. 
• Turning plugs off: Walk around your home (or office) and unplug anything that isn’t in use. This will ensure you’re not using excess electricity you don’t need to. 
• Install a smart meter: A smart meter will help you understand your electricity usage, allowing you to monitor your daily usage and react accordingly to reduce it.  

Summary

• Ofgem determines how much energy is used by the typical household by looking at historical averages
• A kWh is used to measure the amount of energy someone is using
• Ofgem also requires energy suppliers to provide customers with a payment plan they can afford if they’re unable to pay their bills.
• If you still can’t agree with your supplier, you can contact Citizens Advice or Advice Direct Scotland if you live in Scotland
• The cost of electricity varies based on how you pay and what type of tariff you are on

Written by

Tamara Birch Senior writer

Tamara is a London-based journalist and has written about environmental topics for more than four years. This includes advising small business owners on cost-effective ways, like solar panels and energy-efficient products, to help them become more sustainable.

She has used her journalist and research skills to become highly knowledgeable on sustainable initiatives, issues, and solutions to help consumers do their bit for the environment – all while reducing monthly costs.

In addition to adopting sustainable practices in her personal life, Tamara has worked in the retail B2B space to help independent retailers think about their environmental choices and how they can help improve their business. She now uses this knowledge to help consumers do the same.

Her passion for sustainability and eco-friendly solutions stems from a long obsession with nature and animals and ensuring they feel looked after. In her free time, Tamara enjoys reading fantasy novels, visiting the gym, and going on long walks in new areas.

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Christopher McFadden

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