Average Price of Electricity Per kWh in the UK (2025)

From 1 July to 30 September 2025, the average price of electricity per kWh will be 25.73 pence for a typical household that pays by Direct Debit.

This is according to the latest energy price cap of £1,720 per year set by the Office of Gas and Electricity Markets (Ofgem), the energy regulator for Great Britain. Understanding the average cost per kilowatt hour (kWh) is key to controlling your household energy use and avoiding surprises on your monthly bill.

Recent figures indicate that the cost-of-living crisis is still ongoing for many households in the UK. In June 2025, 62% of households in Great Britain reported that their cost of living had increased in the previous month, with increases mainly attributed to higher electricity, food, and fuel costs.

The cap reflects the maximum amount suppliers can charge, but actual bills depend on individual energy consumption. If you use more energy, you’ll pay more; if you consume less, you’ll pay less. Knowing how much you pay and how much you consume can help identify areas where you can reduce your usage and lower your expenses.

This guide will help you break down what you pay per unit, how standing charges factor in, why your region might be more expensive, and what you can do to reduce your costs. We’ll also cover how the price cap works (and what it doesn’t do), along with a few smart tools to help you take back control of your energy spend.

Quick Takeaways on Average Price of Electricity per kWh in the UK

The average electricity unit rate in the UK from 1 July to 30 September is capped at 25.73p per kWh for most households on standard variable tariffs.
Standing charges apply daily, regardless of usage, and can significantly affect your annual bill—even if you use less power.
Direct debit remains the cheapest way to pay, while credit and prepayment methods often come with higher costs.
Electricity prices vary by region, with some areas paying noticeably more due to local network and infrastructure costs.
The Ofgem price cap controls per-unit rates—not total bills. Your overall cost still depends on how much electricity you use.
A smart meter, tariff comparison, and energy-saving habits can all help reduce your electricity spend in 2025.

What Is a kWh and Why Does It Matter?

Before diving into price comparisons, it’s worth understanding what you’re paying for. A kilowatt hour (kWh) is a standard unit of energy. It represents the amount of electricity used to power a 1,000-watt appliance for one hour.

Examples of 1 kWh in action:

Boiling a kettle 10 times
Running a dishwasher cycle
Watching TV for 10 hours
Charging a laptop 20 times

When your electricity bill arrives, your supplier charges you for each kWh your home uses, plus a daily standing charge, which you pay regardless of how much energy you consume.

That means two things:

1. The more kWh you use, the higher your bill.

2. Even if you use no electricity at all, you still pay a base charge just for being connected to the grid.

In 2025, keeping tabs on your kWh usage is one of the easiest ways to reduce your bills, especially with smart meters making real-time monitoring easier than ever.

Understanding the Ofgem Price Cap (2025)

The Ofgem price cap is designed to limit how much energy suppliers can charge customers on standard variable tariffs. It’s reviewed and updated quarterly (every three months), based on wholesale prices, network costs, and supplier margins.

As of 1 July to 30 September 2025, the energy price cap sets the maximum rates for most standard tariffs at:

Charge Type	Electricity (Q3 2025)
Unit Rate	25.73 pence per kWh
Standing Charge	51.37 pence per day

Here’s a cost breakdown for a typical household using 2,700 kWh of electricity a year:

Energy usage:
2,700 kWh × £0.2573 = £694.71
Standing charge:
365 days × £0.5137 = £179.80

Total: £694.71 + £179.80 = £874.51 per year

So, while the standing charge might look like a small number, it makes up over 20% of your total annual electricity bill, even if your usage is low.

Understanding how unit rates and fixed charges work together is essential for budgeting and reducing costs. It’s important to know that:

The cap is not a cap on your total bill—it only limits the price per unit of energy used.
Your actual bill depends on your usage, not just the unit rate.
The price cap only applies to standard variable tariffs and default tariffs, not fixed or time-of-use tariffs.

Suppliers can’t charge more than these rates unless you’re on a special tariff, but they can charge less, which is why comparing deals or switching providers could save you money.

Want to see the history of the energy price cap over time? See our complete guide here (includes charts and estimates), and also see how much this will impact your appliance running costs.

Regional Electricity Price Variations Across the UK

Even though the Ofgem price cap sets a national limit, electricity unit rates and standing charges vary depending on where you live. These differences are influenced by:

Local network costs — These vary by region and rural areas often have higher expenses per customer.
Supplier pricing strategies — These may differ depending on competition, customer base, infrastructure, and the supplier’s operating costs in your area.

Why Does Region Matter?

Energy suppliers divide the UK into 14 electricity distribution zones, each with its own set of pricing adjustments. That means a household in London might pay more per kWh than someone in the North West, even if they use the same amount of energy.

Average Electricity Rates by UK Region (Q3 2025 – Direct Debit, Single Rate)

People who pay by Direct Debit for the energy they use. It involves paying the same price for the electricity you use at any time of day, called a ‘single rate.’ (Your actual rate may vary depending on the supplier and payment method, e.g., prepay, credit, direct debit).

The table below shows the price of electricity per kWh based on location:

Region	Daily standing charge July to September 2025	Unit rate July to September 2025
North West	48.85 pence per day	26.65 pence per kWh
Northern	57.56 pence per day	24.96 pence per kWh
Yorkshire	56.35 pence per day	24.84 pence per kWh
Northern Scotland	58.69 pence per day	25.79 pence per kWh
Southern	42.30 pence per day	25.94 pence per kWh
Southern Scotland	54.25 pence per day	24.53 pence per kWh
North Wales and Mersey	67.65 pence per day	27.20 pence per kWh
London	43.76 pence per day	25.13 pence per kWh
South East	45.28 pence per day	26.39 pence per kWh
Eastern	45.94 pence per day	26.01 pence per kWh
East Midlands	46.78 pence per day	25.06 pence per kWh
Midlands	50.69 pence per day	25.14 pence per kWh
Southern Western	51.72 pence per day	26.31 pence per kWh
South Wales	49.38 pence per day	26.32 pence per kWh
Great Britain average	51.37 pence per day	25.73 pence per kWh

Source: Ofgem

Prices include VAT and are rounded to two decimal places.

What This Means for You

If you’re in North Wales and Mersey, you’re likely paying more per unit and day than someone in Southern Scotland or Yorkshire, even under the same supplier.

You can use your postcode to compare tariffs on energy switching sites, or ask your supplier for your exact unit rate and standing charge. Many consumers discover they’re on a “default tariff” and could switch to a better deal.

How Payment Type Impacts Electricity Costs

Many people wonder how much their energy bill may change based on the method they use to pay it.

Ofgem’s price cap varies depending on how you pay for your electricity. The three main payment types are:

Prepayment Meter – historically the most expensive, but narrowing in 2025 due to government support
Direct Debit – typically the cheapest
Standard Credit (pay on receipt of bill) – more expensive

The table below shows how the unit and standard prices of electricity in different regions compare for single rate users paying using different methods based on the current price cap from 1 July to 30 September 2025:

How to Calculate Your Electricity Bill (and Cut It)

To understand your real electricity cost, you need two numbers from your bill:

Your unit rate (pence per kWh)
Your daily standing charge

Then multiply by your household usage and the number of days in your billing period.

Example: Medium-Usage Household

Let’s say you live in the East Midlands, where rates are:

Unit rate: 25.06p/kWh
Standing charge: 46.78p/day
Annual electricity use: 2,700 kWh (typical medium-use UK home)

Your bill would be:

Electricity usage:
2,700 × £0.2506 = £676.62
Standing charge:
365 × £0.4678 = £170.75

Total estimated bill: £676.62 + £170.75 = £847.37/year

This figure will be slightly higher or lower depending on:

The number of people in your household
How energy-efficient your appliances are
Whether you use time-of-use tariffs like Economy 7

Smart Tips to Reduce Your Electricity Bill in 2025

With unit rates still above 25p/kWh in most regions, even small changes can make a noticeable impact. Here’s what you can do:

Switch to a Better Tariff

Use comparison tools to explore fixed-rate or smart tariffs. Some offer off-peak discounts, which can be helpful if you have an EV, heat pump, or storage heaters.

Install a Smart Meter

Smart meters help you monitor real-time usage, avoid estimated bills, and identify what’s costing you most.

Optimise Appliance Use

Use dishwashers and washing machines on eco settings
Don’t leave devices on standby
Boil only the water you need in the kettle
Air-dry clothes instead of using the tumble dryer

Improve Home Insulation

Reducing heating costs also reduces the amount of electricity used by electric heaters or storage systems. Consider draught-proofing, radiator panels, or insulation upgrades.

Use LED Bulbs & Energy-Efficient Appliances

Replacing old halogens with LEDs can cut lighting costs by 80%. Look for A-rated appliances when replacing anything.

Will the Price of Electricity Increase?

The current energy price cap set at £1,720 per year is a decrease of 7% compared to the cap set between 1 April to 30 June 2025 (£1,849).

Analysts at Cornwall Insights predict that the final three months of the year from October to December will show little change from the newly announced figure. Ofgem will announce the next energy price cap levels for period from 1 October 2025 to 31 December 2025 on 27 August.

Various factors helped drive the July price cap drop, including a fall in wholesale market prices, following the announcement of US tariffs. Other influences that have calmed the market include the prospect of Europe easing its gas storage rules. Greater flexibility to gas storage refilling rules help ensure stable and affordable energy supplies.

However, while current forecasts point to little overall change in the October cap, much could change in three months, especially in the wholesale market. The UK’s heavy reliance on imported energy leaves it very vulnerable to international market volatility.

Check out our complete guide to UK gas imports if you are interested in learning more about where the UK get its gas from.

Developments in areas such as the Ukraine – Russia negotiations, EU–US trade talks, or even changing weather patterns, could all push prices up or down in the months ahead.

The UK may only be able to rely entirely on renewables like wind power as soon as 2030, so the only option is to ride the wave.

In response to the current energy crisis, the UK government recently published it’s Clean Power 2030 Action Plan to usher in a new era of clean electricity. One of its main objectives is to maintain a secure and affordable energy supply in an increasingly unstable world.

Recommended reading:

Should You Fix Your Energy Bills?

Unfortunately, there is no easy way to answer this question, since the energy market is extremely erratic and could continue to change.

For example, if you decided to move to a fixed tariff now, it could potentially protect you from the next energy price cap increase.

However, for others, it may end up making more financial sense to stay to the normal standard tariff and remain protected by the energy price cap.

Data from Ofgem shows that as of 1 April 2025, 65% of customers were on Standard Variable Tarrifs (price cap), with 35% of customers on fixed contracts. If you’re on a fixed deal, you won’t be affected by changes to the price cap.

Since forecasts show that the October price cap for the autumn months will stay around a similar level, you might save money by switching tariffs if you’re currently paying variable rates. However, you may prefer to wait a couple of weeks to see whether energy companies start lowering prices more as they adjust to the new July price caps.

Remember forecasts can change. If energy prices decrease while you’re fixed into a deal, and you want to leave your contract early, some fixed deals will charge you hefty exit fees to drop out.

Ensure you compare your monthly payments on a fixed deal with those you’d expect to pay on the price-capped tariff before switching, and ensure you’re not agreeing to exit fees that would stop you being able to leave should things change.

For the complete breakdown of how we determined whether it’s wise to fix your energy prices or not, see our complete guide to fixing your energy prices.

Summary: Average Price of Electricity Per kWh in the UK

Electricity prices in the UK remain a key concern for households in 2025, shaped by regional differences, supplier tariffs, and how you choose to pay.

Understanding how unit rates and standing charges work is essential for managing your energy bills. While the Ofgem price cap provides some protection, it doesn’t guarantee a low bill—your total cost still depends on how much electricity you use, where you live, and whether you’re paying by direct debit, credit, or prepayment.

Some regions pay noticeably more than others, and different payment methods can lead to significant variations in cost. Direct debit typically offers the best value, while credit and prepayment plans may carry higher charges.

As the energy market continues to evolve, staying informed, reviewing your tariff regularly, and using tools like smart meters can help you stay in control and avoid paying more than necessary.

Bear in mind that electricity prices aren’t one-size-fits-all. A better understanding of your rates and payment setup can help you make smarter, more cost-effective choices for your home.

FAQs About the Average Price of Electricity Per kWh in the UK

What Is the Average Cost of Electricity Per kWh in the UK in 2025?

The average electricity unit rate under the current Ofgem price cap is around 25.73p per kWh for direct debit customers. This protects households on standard variable tariffs from excessive charges.

What Is a Standing Charge and How Does It Affect My Bill?

The standing charge is a fixed daily fee that covers the cost of maintaining the energy network and supplying your home—even if you don’t use electricity that day. For most households, this charge is just over 51p per day and can add up to a significant portion of your bill over the year.

Why Do Electricity Prices Differ by Region?

Electricity prices vary across the UK due to differences in network distribution costs, regional infrastructure, and the cost to supply energy in your area. That’s why someone in Yorkshire might pay less per unit than someone in North Wales.

How Can I Estimate My Yearly Electricity Cost?

To estimate your bill:

Multiply your annual usage (e.g., 2,700 kWh) by your supplier’s unit rate.
Then add your standing charge (daily rate × 365).

The total gives you a rough estimate of your annual electricity cost, depending on your tariff and region.

Does the Ofgem Price Cap Limit My Total Bill?

No. The price cap limits how much suppliers can charge per kWh and per day—not the total amount you pay. Your total bill still depends on how much electricity you use.

Do Payment Methods Affect Electricity Rates?

Yes. Households that pay by direct debit generally get cheaper unit rates and lower standing charges than those paying by standard credit or prepayment meters, which tend to cost more per unit.

Will Electricity Prices Go Up or Down?

Current forecasts point to little overall change in the final three months of the year from October to December 2025. However, factors like international market volatility, Ukraine – Russia negotiations, EU–US trade talks, or changing weather patterns could push prices up or down.

Sources and References

Ofgem – Energy price cap

Statista – British adults reporting a cost of living increase 2021-2025

Ofgem – Get energy price cap, standing charges, and unit rates by region

Cornwall Insights – Cornwall Insight Responds to Ofgem’s Price Cap Announcement

European Parliament – Gas storage: Parliament backs refill flexibility to bring down prices

Ofgem – Energy price cap will fall by 7% from July

GOV.UK – Clean Power 2030 Action Plan