From 1 July to 30 September 2026, the average price of electricity is 26.11 pence per kWh for a typical household on a standard variable tariff paying by Direct Debit.

This is based on Ofgem’s latest energy price cap of £1,862 per year for a typical dual-fuel household paying by Direct Debit. The cap applies in England, Scotland and Wales, and is based on average unit rates and standing charges.

The previous price cap, which applied from 1 April to 30 June 2026, was £1,641 per year. The July to September cap is therefore 13% higher, mainly due to higher wholesale energy costs.

The price cap does not limit your total bill. It limits the unit rates and standing charges suppliers can charge customers on default and standard variable tariffs. If you use more energy, you will pay more; if you use less, you will pay less.

Understanding how much you pay per kilowatt hour, how standing charges work, and why rates vary by region can help you make better decisions about your energy use, tariff and household budget.

Quick Takeaways:

• From 1 April to 30 June 2026, the average electricity unit rate is 24.67p per kWh for Direct Debit customers on standard variable tariffs.
• The average electricity standing charge is 57.21p per day, charged regardless of usage.
• Direct Debit is usually the cheapest payment method; standard credit and prepayment can cost more.
• Electricity prices vary by region due to local network, infrastructure, and supplier costs.
• The Ofgem price cap limits unit rates and standing charges, not your total bill.
• Smart meters, tariff comparisons, and energy-saving habits can help reduce electricity costs in 2026.

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 2026, 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.

Understanding the Ofgem price cap

The Ofgem price cap limits how much energy suppliers can charge customers on default and standard variable tariffs.

It is reviewed every three months and reflects costs such as:

• wholesale energy prices
• network costs
• operating costs
• policy costs
• VAT
• supplier allowances

From 1 July to 30 September 2026, the average Direct Debit price cap rates are:

These figures are averages across England, Scotland and Wales and include 5% VAT.

The price cap is often described as an annual bill figure, but that figure is only an estimate for a typical household. It is not a maximum bill.

Your actual bill depends on:

• whether you are on a fixed, variable or time-of-use tariff
• how much electricity you use
• how much gas you use, if applicable
• where you live
• how you pay
• your meter type

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.

You’re right. I under-updated it. The article should now treat 1 July to 30 September 2026 as the live/current cap period, not April to June.

Ofgem’s current figures are: £1,862/year for a typical dual-fuel Direct Debit household from 1 July to 30 September 2026, up 13% from the previous cap. Electricity is 26.11p/kWh with a 57.19p/day standing charge; gas is 7.33p/kWh with a 29.04p/day standing charge. These are GB averages, include 5% VAT, and vary by region/payment method/meter type.  

Here’s the corrected version of the core copy.

From 1 July to 30 September 2026, the average price of electricity is 26.11 pence per kWh for a typical household on a standard variable tariff paying by Direct Debit.

This is based on Ofgem’s latest energy price cap of £1,862 per year for a typical dual-fuel household paying by Direct Debit. The cap applies in England, Scotland and Wales, and is based on average unit rates and standing charges.

The previous price cap, which applied from 1 April to 30 June 2026, was £1,641 per year. The July to September cap is therefore 13% higher, mainly due to higher wholesale energy costs.

The price cap does not limit your total bill. It limits the unit rates and standing charges suppliers can charge customers on default and standard variable tariffs. If you use more energy, you will pay more; if you use less, you will pay less.

Understanding how much you pay per kilowatt hour, how standing charges work, and why rates vary by region can help you make better decisions about your energy use, tariff and household budget.

Quick takeaways

• From 1 July to 30 September 2026, the average electricity unit rate is 26.11p per kWh for Direct Debit customers on standard variable tariffs.
• The average electricity standing charge is 57.19p per day.
• The typical dual-fuel Direct Debit price cap is £1,862 per year, up from £1,641 in the previous cap period.
• Gas is now 7.33p per kWh, with a 29.04p daily standing charge.
• The Ofgem price cap limits unit rates and standing charges, not your total annual bill.
• Your actual rates depend on your region, payment method, meter type, tariff and supplier.
• Direct Debit is usually cheaper than standard credit, while prepayment rates differ separately.
• Smart meters, tariff comparisons and cutting high-use appliances can help reduce your electricity costs.

What is a kWh and why does it matter?

A kilowatt hour, or kWh, is the standard unit used to measure electricity consumption.

One kWh is the amount of electricity used by a 1,000-watt appliance running for one hour.

Examples of 1 kWh in action include:

• running a 1,000W electric heater for one hour
• using a 100W appliance for 10 hours
• running a dishwasher cycle
• boiling a kettle several times
• watching TV for several hours
• charging a laptop many times

Your electricity bill is mainly made up of two charges:

1. Unit rate: the amount you pay for each kWh of electricity used.
2. Standing charge: a fixed daily fee you pay to stay connected to the electricity network, even if you use no electricity that day.

That means your bill is affected by both your actual usage and the fixed cost of having an electricity supply.

Understanding the Ofgem price cap

The Ofgem price cap limits how much energy suppliers can charge customers on default and standard variable tariffs.

It is reviewed every three months and reflects costs such as:

• wholesale energy prices
• network costs
• operating costs
• policy costs
• VAT
• supplier allowances

From 1 July to 30 September 2026, the average Direct Debit price cap rates are:

These figures are averages across England, Scotland and Wales and include 5% VAT.

The price cap is often described as an annual bill figure, but that figure is only an estimate for a typical household. It is not a maximum bill.

Your actual bill depends on:

• how much electricity you use
• how much gas you use, if applicable
• where you live
• how you pay
• your meter type
• whether you are on a fixed, variable or time-of-use tariff

How does the July 2026 price cap compare with the previous cap?

The previous cap, from 1 April to 30 June 2026, was £1,641 per year for a typical dual-fuel household paying by Direct Debit.

The July to September 2026 cap is £1,862 per year, which is a 13% increase.

The biggest change is the rise in unit rates, especially gas. Electricity also increases from 24.67p/kWh to 26.11p/kWh.

How much is the average electricity bill in 2026?

A typical medium-use household uses around 2,700 kWh of electricity per year.

Using the July to September 2026 average Direct Debit rates:

Electricity usage

2,700 kWh × £0.2611 = £704.97

Standing charge

365 days × £0.5719 = £208.74

Estimated annual electricity-only cost

£704.97 + £208.74 = £913.71 per year

This is for electricity only. If you also use mains gas, your total energy bill will be higher.

For comparison, under the April to June 2026 cap, the same 2,700 kWh of electricity would have cost around £874.91 per year.

That means the July cap adds roughly £38.80 per year to the electricity-only cost of a typical medium-use household, assuming usage stays the same.

Why the standing charge matters

The electricity standing charge is 57.19p per day from July to September 2026.

Over a full year, that equals:

57.19p × 365 = £208.74

This means more than £200 of your annual electricity bill is fixed before you use a single kWh.

That matters most for low-usage households, because the standing charge forms a larger share of their total bill. Reducing your electricity use will lower the unit-rate part of your bill, but it will not usually reduce the standing charge.

Regional electricity price variations across the UK

Electricity prices vary by region, even under the same national price cap.

Great Britain is divided into electricity distribution regions. Each region has different network costs, infrastructure costs and supplier cost adjustments.

That is why two households using the same amount of electricity can pay different rates depending on where they live.

Regional differences are influenced by:

• local distribution network costs
• rural versus urban infrastructure
• maintenance and upgrade costs
• regional energy demand
• the cost of supplying customers in that area

The Ofgem average electricity unit rate for July to September 2026 is 26.11p per kWh, but your actual regional rate may be higher or lower.

To find your exact rate, check your latest bill or use Ofgem’s regional unit rate and standing charge tables.

How payment type affects electricity costs

How you pay for energy can affect the rates you are charged.

The main payment types are:

• Direct Debit: usually the cheapest mainstream payment method
• Standard credit: paying after receiving a bill, usually more expensive
• Prepayment meter: paying in advance, with separate capped rates

For July to September 2026, the average Direct Debit electricity rate is 26.11p/kWh with a 57.19p/day standing charge.

The average standard credit electricity rate is higher at around 27.56p/kWh, with a standing charge of around 65.74p/day.

Prepayment rates are different again. The average prepayment electricity unit rate is lower than Direct Debit, but the overall cost depends on your region, usage and meter setup.

The key point: do not compare tariffs using the headline annual cap alone. Compare the actual unit rate, standing charge and your own annual kWh use.

How to calculate your electricity bill

To estimate your annual electricity bill, use this formula:

Annual electricity bill = annual kWh usage × unit rate + daily standing charge × 365

Example using July to September 2026 average Direct Debit rates:

• Annual electricity use: 2,700 kWh
• Unit rate: 26.11p/kWh
• Standing charge: 57.19p/day

Calculation:

2,700 × £0.2611 = £704.97

365 × £0.5719 = £208.74

Total = £913.71 per year

For the most accurate estimate, use the unit rate and standing charge shown on your own bill.

Typical electricity usage by household size

Actual usage varies, but typical annual electricity use is often around:

These figures use the July to September 2026 average Direct Debit electricity rate of 26.11p/kWh and standing charge of 57.19p/day.

They are electricity-only estimates and exclude gas.

What appliances use the most electricity?

The biggest electricity users are usually appliances that generate heat, cool air or run for long periods.

Common high-use appliances include:

• tumble dryers
• electric heaters
• immersion heaters
• ovens
• washing machines
• dishwashers
• fridge-freezers
• electric showers
• air conditioning units
• hot tubs
• EV chargers

Smaller devices such as phone chargers, laptops and LED bulbs cost much less individually, although they can still add up if used constantly.

How to reduce your electricity bill in 2026

With electricity now averaging 26.11p per kWh, reducing avoidable usage can make a meaningful difference.

Check your tariff

Compare your current unit rate and standing charge against fixed and smart tariffs. A fixed tariff may be worth considering if it is cheaper than the current cap and does not include excessive exit fees.

Use a smart meter

A smart meter can help you track electricity use, avoid estimated bills and identify expensive habits.

Reduce tumble dryer use

Tumble dryers are one of the most expensive household appliances to run. Air drying where possible can cut electricity use.

Be careful with electric heating

Electric heaters can be costly if used for long periods. At 26.11p/kWh, a 2kW electric heater costs about 52p per hour to run.

Use eco settings

Dishwashers and washing machines often use less energy on eco settings, even if the cycles take longer.

Switch to LED bulbs

Replacing old halogen bulbs with LEDs is one of the simplest low-cost upgrades.

Avoid standby waste

Turning appliances off at the plug will not transform your bill on its own, but it can still help, especially in homes with lots of electronics.

Shift usage if you have a time-of-use tariff

If you have an Economy 7, EV or smart tariff, moving usage to cheaper periods can reduce costs.

Will electricity prices increase again?

Electricity prices have already increased under the July to September 2026 cap.

The average electricity unit rate rose from 24.67p/kWh to 26.11p/kWh, while the typical dual-fuel Direct Debit cap increased from £1,641 to £1,862.

The next price cap, covering 1 October to 31 December 2026, is due to be announced by Ofgem on 26 August 2026.

Future prices remain uncertain. They can be affected by:

• wholesale gas prices
• international energy markets
• geopolitical instability
• weather patterns
• network costs
• policy costs
• supplier allowances

Because gas still plays a major role in setting electricity prices, electricity bills can rise even if your home does not use gas directly.

Should you fix your energy bills?

There is no universal answer.

A fixed tariff may make sense if:

• the unit rate is cheaper than the current or upcoming price cap
• you want price certainty
• you expect prices to rise
• exit fees are low or manageable
• the tariff suits your actual usage

Staying on a variable tariff may make sense if:

• fixed deals are more expensive
• you want flexibility
• you think prices could fall
• you do not want exit fees
• you are likely to move home soon

Before fixing, compare:

• electricity unit rate
• gas unit rate, if applicable
• standing charges
• estimated annual cost
• exit fees
• tariff length
• whether the tariff is fixed, tracker or time-of-use

Do not compare only the monthly payment. Monthly payments can be misleading because they are often based on estimated usage, seasonal smoothing or account balance.

Summary: average electricity cost per kWh in the UK

From 1 July to 30 September 2026, the average electricity cost is 26.11p per kWh for Direct Debit customers on standard variable tariffs.

The average electricity standing charge is 57.19p per day, adding around £208.74 per year before any usage is included.

For a typical household using 2,700 kWh of electricity per year, that works out at around £913.71 per year for electricity alone.

The wider dual-fuel energy price cap is now £1,862 per year, up from £1,641 in the previous cap period.

Your actual bill will depend on how much energy you use, where you live, how you pay, your meter type, your supplier and your tariff.

FAQs

What is the average cost of electricity per kWh in the UK in 2026?

From 1 July to 30 September 2026, the average electricity unit rate is 26.11p per kWh for Direct Debit customers on standard variable tariffs.

What is the average electricity standing charge?

The average electricity standing charge is 57.19p per day from 1 July to 30 September 2026.

What is the current Ofgem energy price cap?

From 1 July to 30 September 2026, the Ofgem energy price cap is £1,862 per year for a typical dual-fuel household paying by Direct Debit.

Did the energy price cap go up?

Yes. The cap increased from £1,641 for April to June 2026 to £1,862 for July to September 2026. That is a 13% increase.

Does the Ofgem price cap limit my total bill?

No. The price cap limits unit rates and standing charges. Your total bill still depends on how much energy you use.

Why do electricity prices differ by region?

Electricity prices vary because network costs, infrastructure costs and supplier costs differ across the country.

How much does a typical household pay for electricity?

A medium-use household using 2,700 kWh of electricity per year would pay around £913.71 per year using the July to September 2026 average Direct Debit rates.

Is Direct Debit cheaper than standard credit?

Usually, yes. Standard credit customers typically pay higher unit rates and standing charges than Direct Debit customers.

Are electricity prices going up again in October 2026?

The October to December 2026 price cap has not yet been confirmed. Ofgem is due to announce the next cap on 26 August 2026.

How can I reduce my electricity bill?

Check your tariff, reduce high-use appliances, use a smart meter, switch to LED bulbs, use eco settings and move usage to cheaper periods if you are on a time-of-use tariff.

Recommended reading: 

• Should I fix my energy bills?
• How much should my energy go up? 
• UK Energy Security Strategy Explained
• Where does the UK get its gas from?
• Average carbon footprint per household UK

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