- How much does electricity cost per kWh?
- UK consumer electricity prices kWh: Single-rate and multi-rate
- How is energy cost determined in the UK?
- What is typical domestic consumption?
- What energy bill support is available?
- What can I do to reduce my energy costs?
- Electricity costs for different ways to pay
- How much have electricity prices increased over the past decade?
- Summary
- Electricity usage is measured in kilowatt-hours (kWh)
- Electricity currently costs 27.03 p per kWh right now
- The Energy Price Cap determines the maximum cost of domestic energy
- The price for the period 1st July to 30th September will be 25.73p per kWh
- Solar panels will reduce your energy bills by 70% on average (according to the Energy Saving Trust)
As of 1 July 2025, electricity costs 25.73p per kWh and gas 6.33p per kWh. Households will also pay a daily standing charge of 51.57p for electricity and 28.82p for gas. These rates are set under Ofgem’s latest Energy Price Cap, which changes every three months.
Compared to previous rates (27.03p for electricity and 6.99p for gas), this means the average household will save around £129 a year.
In this guide, we’ll explain how electricity and gas prices are set, what the standing charge means, and how the price cap affects your bills, plus whether renewable energy might help you cut costs further.
How much does electricity cost per kWh?
According to Ofgem’s most recent announcement, the price of electricity will increase from July 1st to September 30th, 2025, to 25.73p per kWh, decreasing from 27.03p.
Below is the average price for energy if you pay by Direct Debit over the last three quarters. However, this price may vary slightly depending on your payment method and location.
| Energy source | 1 January – 31 March 2025 | 1 April to 30 June 2025 | 1 July to 30 September 2025 |
|---|---|---|---|
Electricity | 24.86p per kWh | 27.03p per kWh | 25.73p per kWh |
Gas | 6.34p per kWh | 6.99p per kWh | 6.33p per kWh |
*Data courtesy of Ofgem
UK consumer electricity prices kWh: Single-rate and multi-rate
As mentioned above, the average cost of electricity varies by region and changes every three months once Ofgem announces a new price cap.
Electricity standing charges and unit rates paid by Direct Debit, single rate
As of July 2025, the regional price cap for those who pay by Direct Debit and a single rate:
| Region | Daily standing charge April to June 2025 | Daily standing charge July to September 2025 | Unit rate April to June 2025 | Unit rate July to September 2025 |
|---|---|---|---|---|
| North West | 51.31 pence per day | 48.85 pence per day | 27.93 pence per kWh | 26.65 pence per kWh |
| Northern | 59.83 pence per day | 57.56 pence per day | 26.24 pence per kWh | 24.96 pence per kWh |
| Yorkshire | 58.64 pence per day | 56.35 pence per day | 26.19 pence per kWh | 24.84 pence per kWh |
| Northern Scotland | 60.87 pence per day | 58.69 pence per day | 26.99 pence per kWh | 25.79 pence per kWh |
| Southern | 45.13 pence per day | 42.30 pence per day | 27.24 pence per kWh | 25.94 pence per kWh |
| Southern Scotland | 56.50 pence per day | 54.25 pence per day | 25.82 pence per kWh | 24.53 pence per kWh |
| North Wales and Mersey | 69.54 pence per day | 67.65 pence per day | 28.50 pence per kWh | 27.20 pence per kWh |
| London | 46.20 pence per day | 43.76 pence per day | 26.48 pence per kWh | 25.13 pence per kWh |
| South East | 48.03 pence per day | 45.28 pence per day | 27.68 pence per kWh | 26.39 pence per kWh |
| Eastern | 48.65 pence per day | 45.94 pence per day | 27.33 pence per kWh | 26.01 pence per kWh |
| East Midlands | 49.38 pence per day | 46.78 pence per day | 26.37 pence per kWh | 25.06 pence per kWh |
| Midlands | 53.14 pence per day | 50.69 pence per day | 26.46 pence per kWh | 25.14 pence per kWh |
| Southern Western | 54.27 pence per day | 51.72 pence per day | 27.58 pence per kWh | 26.31 pence per kWh |
| South Wales | 51.79 pence per day | 49.38 pence per day | 27.61 pence per kWh | 26.32 pence per kWh |
| Great Britain average | 53.80 pence per day | 51.37 pence per day | 27.03 pence per kWh | 25.73 pence per kWh |
*Data courtesy of Ofgem
Electricity standing charges and unit rates paid by Direct debit, multi-rate
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:
| Region | Daily standing charge April to June 2025 | Daily standing charge July to September 2025 | Unit rate April to June 2025 | Unit rate July to September 2025 |
|---|---|---|---|---|
| North West | 50.99 pence per day | 48.30 pence per day | 26.47 pence per kWh | 25.26 pence per kWh |
| Northern | 59.44 pence per day | 56.90 pence per day | 25.09 pence per kWh | 23.89 pence per kWh |
| Yorkshire | 58.38 pence per day | 55.88 pence per day | 25.10 pence per kWh | 23.84 pence per kWh |
| Northern Scotland | 61.67 pence per day | 59.77 pence per day | 25.65 pence per kWh | 24.53 pence per kWh |
| Southern | 45.31 pence per day | 42.51 pence per day | 25.95 pence per kWh | 24.72 pence per kWh |
| Southern Scotland | 57.29 pence per day | 55.37 pence per day | 24.58 pence per kWh | 23.37 pence per kWh |
| North Wales and Mersey | 69.20 pence per day | 67.06 pence per day | 27.05 pence per kWh | 25.83 pence per kWh |
| London | 46.03 pence per day | 43.45 pence per day | 25.30 pence per kWh | 24.03 pence per kWh |
| South East | 48.35 pence per day | 45.73 pence per day | 26.33 pence per kWh | 25.11 pence per kWh |
| Eastern | 48.98 pence per day | 46.38 pence per day | 26.05 pence per kWh | 24.81 pence per kWh |
| East Midlands | 49.09 pence per day | 46.28 pence per day | 25.20 pence per kWh | 23.97 pence per kWh |
| Midlands | 53.06 pence per day | 50.50 pence per day | 25.31 pence per kWh | 24.07 pence per kWh |
| Southern Western | 54.74 pence per day | 52.38 pence per day | 26.22 pence per kWh | 25.03 pence per kWh |
| South Wales | 51.24 pence per day | 48.48 pence per day | 26.29 pence per kWh | 25.08 pence per kWh |
| Great Britain average | 53.84 pence per day | 51.36 pence per day | 25.76 pence per kWh | 24.54 pence per kWh |
*Data courtesy of Ofgem
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.
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.
Energy use | Home size and number of occupants | Average annual electricity use |
|---|---|---|
Low | Flat/1-bedroom house with 1 to 2 occupants | 7,500 kWh |
Medium | 2-3-bedroom house with 2 to 3 occupants | 11,500 kWh |
High | 4+ bedroom house with 4 to 5 occupants | 17,000 kWh |
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.
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?
As reported by Ofgem, between January 1 and March 31, 2025, the energy price cap has been set at £1,738 per year for a typical household.
Between April 1 and June 30, 2025, Ofgem has confirmed that the energy price cap will increase by 6.4% to £1,849 per year.
As for the next period (July to September), Ofgem has confirmed that the energy price cap will decrease to £1,720 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:
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
Since 2015, the price of electricity has increased by 54.6%, driven up sharply by the pandemic and the war in Ukraine, both of which have put huge pressures on international energy markets.
As the percentage of the UK’s electricity from renewables increases, electricity prices will 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.
