Average UK gas and electricity prices per kWh unit

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Unit rates and standing charges explained

When you disregard the other parts of your energy bill, the actual price you pay for gas and electricity is broken into two parts:

Standing charge

This is a fixed amount that you are charged each day, regardless of your energy usage. These currently stand at an average of 45p per day for electricity, and 27p per day for gas. So whether it's a day with no usage at all, or a day of heavy usage, you'll be charged the same standing charge.

Unit rate

This is the price you pay per unit of energy you use per day. The amount paid for this part will vary entirely based on your energy consumption.

The unit rate for both gas and electricity prices UK wide are measured in kWh (kilowatt hours). The actual rate you will pay can vary based on your region and pricing plan, but the national average for electricity is around 28p per kWh. The average for gas is significantly less at around 7p per kWh.

Cheap energy deals will often offer a fairly cheap unit rate, but the standing charge also needs to be factored into the value of any potential tariff.

What is a kWh?

A kilowatt hour, the basic unit of energy usage, is calculated as 1 kW (1000w) of energy being used consistently for 1 hour. Almost all household electrical items have their wattage listed somewhere on the product or packaging. You can calculate from this wattage, for example around 900w on a standard microwave, how many kWh that appliance would use if it were to run for an hour straight (0.9 kWh in this case).

Average gas unit rates and fixed costs in 2021

According to government figures for 2021, the average unit price per kWh for gas was 3.52p per kWh. The average fixed costs associated with gas, including standing charges, was £96.32 per year. The regional breakdown was as follows:

Gas unit rates (per kWh) & fixed costs (per year) UK

Average gas rates per kWh are based on assumed annual consumption of 13,600kWh. 

Please note: These are the latest government figures available from 2021, but since then Ofgem has raised the energy price cap so real average prices will currently be higher. Based on our calculations, the average price of gas after the price cap hike on 1st October 2022, is aruond 15p per kWh. Meanwhile, the average daily standing charge for gas is between 27-28p per day, or £100-£102 per year.

We have put together a useful guide on comparing gas prices to help you get the best deal in your area.

Average electricity unit rates per kWh and fixed costs in 2021

According to government figures, one unit of electricity in the UK costs an average of 18.9p per kWh. Meanwhile, the average fixed costs (blanket term for energy charges that don't change with consumption, including standing charges) for electricity in 2021 were £84.66 per year. 

These costs vary depending on the region you live in:

Electricity prices UK per kWh:

Average electricity rates per kWh are based on assumed annual consumption of 3,600kWh. 

Please note: These are the latest government figures available from 2021, but since then Ofgem has raised the energy price cap so real average prices will currently be higher. Based on our calculations, the average price of electricity after the price cap hike on 1st October 2022, is around 52p per kWh. Meanwhile, the average daily standing charge for electricity is between 45-46p per day, or £164-168 per year.

Comparing electricity prices per kWh

When looking to reduce your energy bills, looking at electricity or gas prices per kWh can be a useful tool in calculating the true value of a tariff. However, other factors must be taken into account based on the usage of your property.

For example, a holiday home that's only occupied for two months of the year will not benefit from a tariff which offers a low unit rate per kWh but has a high standing charge, as a lot of the energy bill will be spent on standing charges for days the property is not occupied. Likewise, a property with mixed occupancy which uses a large amount of energy will not benefit from a tariff that offers reduced or no standing charge in exchange for a higher unit rate.

For these reasons the practical solution is to use an energy comparison tool like ours to compare available energy tariffs based on your specific usage requirements or to ensure you visit each individual energy suppliers website for a direct quote.