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Energy Review
Last updated: 2 August 2026

Average Gas & Electricity Prices per kWh (2026)

The amount you pay for gas and electricity depends on a few different factors, but the biggest influence for most households is the Ofgem price cap.

Average Gas & Electricity Prices per kWh (2026)

Current average energy prices in Great Britain

The amount you pay for gas and electricity depends on a few different factors, but the biggest influence for most households is the Ofgem price cap. The current cap runs from 1 July to 30 September 2026. It sets a maximum limit on the unit rates and standing charges that suppliers can charge customers on standard variable tariffs.

26.11p
Avg electricity rate
Per kWh, July 2026
7.33p
Avg gas rate
Per kWh, July 2026
£1,663
Avg annual bill
Direct Debit, revised typical use
Late Aug 2026
Next cap update
For Oct-Dec 2026 rates

The headline figure of £1,663 a year is based on a household paying by Direct Debit with "typical" energy use. As of 1 July 2026, Ofgem lowered its official estimate of typical use because homes are generally using less energy than they used to. The new baseline assumes a typical household uses 9,500 kWh of gas and 2,500 kWh of electricity each year.

The price cap does not limit your total bill. It only caps the cost of each unit of energy. If you use more than the typical 9,500 kWh of gas or 2,500 kWh of electricity, your annual bill will be higher than £1,663.
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Average electricity prices by region

Electricity prices are not the same across the country. The cost of running and upgrading the local power grid varies depending on where you live. It also costs different amounts to transport electricity from the power stations and wind farms where it is generated to your local area. Suppliers pass these local network costs on through your unit rates and standing charges.

Below are the average electricity unit rates for the 14 energy regions in Great Britain, sorted from cheapest to most expensive, based on the July to September 2026 price cap for Direct Debit customers.

RegionAverage electricity unit rate (July 2026)
East Midlands25.10p per kWh
Northern25.22p per kWh
Yorkshire25.31p per kWh
Midlands25.33p per kWh
Southern Scotland25.85p per kWh
Great Britain average26.11p per kWh
North West26.13p per kWh
South Wales26.33p per kWh
London26.35p per kWh
Eastern26.38p per kWh
Southern Western26.39p per kWh
Northern Scotland26.42p per kWh
Southern26.42p per kWh
South East26.67p per kWh
North Wales and Mersey27.66p per kWh

The East Midlands currently has the cheapest electricity unit rate in Great Britain, while North Wales and Mersey is the most expensive. The gap between the cheapest and most expensive regions is around 2.5p per kWh, which can add up to a noticeable difference over a full year of electricity use.

Average gas prices by region

Just like electricity, gas prices change depending on your region. The differences are driven by the cost of maintaining local gas pipes and how far the gas needs to travel through the national network to reach your home.

Here are the average gas unit rates for each region under the July to September 2026 price cap, assuming you pay by Direct Debit.

RegionAverage gas unit rate (July 2026)
East Midlands7.19p per kWh
Northern Scotland7.23p per kWh
Southern Scotland7.23p per kWh
North West7.24p per kWh
Eastern7.26p per kWh
Yorkshire7.27p per kWh
Midlands7.27p per kWh
North Wales and Mersey7.28p per kWh
Northern7.28p per kWh
Great Britain average7.33p per kWh
South East7.39p per kWh
South Wales7.42p per kWh
Southern Western7.48p per kWh
London7.50p per kWh
Southern7.53p per kWh

The East Midlands also benefits from the cheapest gas rates, while the Southern region pays the most. The regional gap for gas is smaller than it is for electricity, but because households typically use nearly four times as much gas as electricity for heating and hot water, these small fractions of a penny still impact your final bill.

Understanding your standing charges

Your energy bill is made up of two parts: the unit rate for the energy you actually use, and a fixed daily standing charge. You pay the standing charge no matter how much gas or electricity you use, even if your usage is zero. It covers the cost of keeping your home connected to the energy network, maintaining wires and pipes, and covering the cost of suppliers that have gone out of business.

Under the July 2026 price cap, the average standing charges for a Direct Debit customer are 57.19p per day for electricity and 29.04p per day for gas.

There was a major change to how standing charges are calculated on 1 April 2026. Previously, standing charges included the cost of funding the Warm Home Discount scheme. The government moved this cost off the standing charge and onto the unit rate instead. Ofgem said this reduced average dual-fuel standing charges by around £13 a year, shifting more of the cost towards households that use more energy.

The Warm Home Discount itself currently offers a £150 winter rebate to eligible low-income and pensioner households. A recent rule change removed the "high cost to heat" property assessment in England and Wales, which automatically expanded the scheme to cover around 6 million households.

How your payment method changes the price

The rates you pay are heavily influenced by how you choose to settle your bill. Ofgem sets different price caps for different payment methods because suppliers face different administration costs and financial risks depending on how you pay.

Direct Debit
£1,663/ year
Average dual-fuel cap
Standard Credit
£1,796/ year
Around £133 a year more than Direct Debit

Standard credit means you pay for your energy after you receive a bill, usually by cash, cheque, or card payment. Suppliers charge more for this method because it costs them more to process the payments and carries a higher risk of late payment or debt. Paying by a monthly automated Direct Debit is generally cheaper, though rates can differ by payment method, so compare the tariff available for your meter and how you pay.

Why did prices change in July 2026?

The July 2026 price cap brought a 13% overall increase compared to the previous quarter (April to June 2026). However, the price rises were not split evenly between gas and electricity. Three main factors drove the changes to your unit rates.

Gas market volatility
Global supply issues, heavily impacted by conflict in the Middle East restricting LNG shipments, pushed gas unit rates up by around 28%.
Different wholesale-cost impacts
Electricity bills rose by around 5%, a much smaller increase than gas. Ofgem says this reflects the growing amount of renewable generation on the system, which has reduced reliance on gas to generate our electricity.
Lower typical usage
Ofgem lowered its estimate of typical household usage, which slightly offset the impact of the higher unit rates on the headline £1,663 average bill figure.

Fixed vs variable tariffs

The Ofgem price cap only applies to standard variable tariffs (SVTs). If you are on an SVT, your unit rates and standing charges will change every three months when Ofgem updates the cap. The next cap, covering October to December 2026, will be announced in late August 2026. Early analyst forecasts suggest rates will remain roughly stable or see a minor increase.

You do not have to stay on a variable tariff. Many suppliers offer fixed-rate tariffs, which lock in your unit rates and standing charges for a set period, usually 12 months. Fixing gives you certainty over your costs and protects you from future price hikes. However, if wholesale energy prices drop and Ofgem lowers the price cap, you will miss out on the savings unless you pay an exit fee to leave your fixed deal early.

What is a kilowatt-hour (kWh)?

Energy suppliers charge you for gas and electricity by the kilowatt-hour (kWh). A kWh is simply a unit of measurement that shows how much energy you have used over time. It equals using 1,000 watts of power for exactly one hour.

To put that into perspective, using 1 kWh of electricity looks like this:

  • Leaving a 100-watt lightbulb switched on for 10 hours.
  • Running a 2,000-watt electric heater for 30 minutes.
  • Using a 1,000-watt microwave at full power for one hour.

You can find the wattage of any electrical appliance in your home by checking its label or packaging. The higher the wattage, the faster it will use up a kilowatt-hour of energy.

Frequently asked questions

Does the energy price cap mean my bill won't go over £1,663?

No. The £1,663 figure is just an average based on a typical household's usage. The cap actually limits the maximum amount your supplier can charge you for each unit of energy and your daily standing charge. If you use a lot of energy, your bill will be higher than the average.

Why is electricity more expensive than gas per kWh?

Electricity usually costs more per kWh than gas for households because it has different generation, network and policy costs. Much of the UK's electricity is still generated by burning gas in power stations, which involves energy losses during the conversion process. Electricity standing charges and unit rates also carry more of the costs for maintaining the national grid and funding green energy schemes.

Are standing charges the same for everyone?

No, standing charges vary widely depending on where you live and how you pay for your energy. It costs different amounts to maintain the energy network in different regions, and suppliers pass these local costs on to customers. Customers paying by standard credit also face different standing charges to those paying by Direct Debit.

When will the next energy price cap be announced?

Ofgem reviews and changes the price cap every three months. The next cap update will be announced in late August 2026, and those new rates will apply to your bills from 1 October to 31 December 2026.

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Rob Gibbs

Written by

Rob Gibbs

Hi, I'm Rob, and I run Energy-Review.co.uk. I initially started this project in 2018 when I was looking to switch energy suppliers and found there wasn't a website that provided simple, data-backed reviews on all the suppliers available. Since then, I have spent a lot of time (too much, some may say!) looking at all publicly available data about each supplier and writing reviews using this information. These reviews are updated as regularly as possible, and any data is backed up by a source where necessary. I have also started writing guides on various energy-related topics, which hopefully you will find useful. If you find any issues, please use our contact form to let us know.