From 1 October to 31 December 2025, the average cost of gas per kWh will be 6.29 pence for a typical household that pays by Direct Debit.
Data from a UK Parliament research briefing shows that the wholesale prices of gas reached record highs during the energy crisis and have yet to return to their earlier levels. Typical bills under the October to December 2025 price cap will still be 44% higher than in winter 2021/22, despite the fall in prices in late 2023 and much of 2024.
Although many households hoped the worst of the energy crisis was behind them, there is little prospect of significant cuts to bills in the near future.
For families already stretched by rent and food price increases, the persistence of high energy costs underscores how the cost-of-living crisis has evolved rather than ended. Understanding how gas prices are calculated and what shapes those unit rates has never been more critical for managing household budgets and planning ahead.
Key Takeaways on the Average Cost of Gas per KWh in the UK:
- The average gas unit rate is 6.29 pence per kWh under the October to December 2025 Ofgem price cap.
- Despite falling wholesale prices, typical gas bills are still higher than winter 2021/22 levels.
- A medium-use household uses 11,500 kWh/year of gas and pays roughly £830–£850 per year under current rates.
- Gas unit rates vary slightly by region, typically between 6.1p and 6.5p per kWh, depending on location and network charges.
- Paying by Direct Debit remains the cheapest option. Standard credit adds about £70–£90 per year, while prepayment rates are now closely aligned with Direct Debit after levelisation changes.
- Lower thermostat by 1°C, insulate well, service your boiler annually, and use smart thermostats to trim heating costs by up to 10%.
- Modest rate dips are expected early in 2026, but prices are unlikely to return to pre-crisis levels
What Is a kWh and Why Does It Matter?
A kilowatt-hour (kWh) is the standard unit used to measure how much energy you use. It represents one kilowatt of power consumed continuously for one hour. In simple terms, it’s a way to quantify energy usage in a form that directly links to what you pay on your bill. When you see “6.29 p per kWh” on your tariff, it means you pay that amount for every unit of gas energy your home uses.
To visualise it, imagine leaving a one-kilowatt appliance running for an hour. It could be a large electric heater, a tumble dryer, or a powerful vacuum cleaner. That single hour of use equals one kWh. For gas, a kWh is measured through the amount of energy produced when the gas is burned, which is then converted from cubic metres into kilowatt-hours on your bill.
This matters because your total energy cost depends on two factors: the amount of energy you use (in kWh) and the price per unit. Even slight differences in the unit rate, such as a few tenths of a penny, can make a noticeable difference over the course of a winter of heating and cooking.
Understanding the Ofgem Gas Price Cap (2025)
The Ofgem price cap limits the amount that energy suppliers can charge customers on standard variable tariffs for each unit of gas used. It’s reviewed and updated every three months to reflect changes in wholesale gas prices, network maintenance costs, and supplier margins.
From 1 October to 31 December 2025, the price cap sets the maximum gas rates at:
| Charge Type | Gas (Q4 2025) |
| Unit Rate | 6.29 pence per kWh |
| Standing Charge | 34.03 pence per day |
Ofgem estimates that the typical household in England, Scotland, and Wales uses approximately 11,500 kWh of gas per year. Here’s a cost breakdown:
Energy usage:
11,500 kWh × £0.0629 = £723.35
Standing charge:
365 days × £0.3403 = £124.20
Total: £723.35 + £124.20 = £847.55 per year
Even though the standing charge may seem small, it still accounts for around 15% of a typical annual gas bill, a reminder that fixed daily costs can add up even when consumption is low.
The price cap is often misunderstood. It doesn’t limit the total amount you’ll pay. It only caps the price per unit of energy used. Your actual bill depends entirely on how much gas your household consumes. The more you use, the more you’ll pay. The cap also applies only to standard variable and default tariffs, not to fixed-rate or specialist deals.
Suppliers can’t charge more than these capped rates, but they can charge less, which is why comparing tariffs or switching suppliers remains one of the most effective ways to lower your overall energy costs.
Want to see the history of the energy price cap over time? See our complete guide here (includes charts and estimates).
Regional Average Cost of Gas per KWh Across the UK
Even though the Ofgem price cap sets a national limit on what suppliers can charge for gas, the actual unit rates and standing charges you face depend on where you live. These regional differences arise from several factors:
- Local network and distribution costs — Moving gas through pipelines, maintaining infrastructure, and balancing supply all cost more in some regions (especially remote or rural areas).
- Supplier strategy and costs — Competition, operating overheads, and infrastructure in a given area affect how suppliers set rates up to the cap.
Why Region Makes a Difference
Gas suppliers divide the UK into regional zones, each with its own maximum unit and standing charge allowances under the cap. That means two households using the same amount of gas could still pay different rates simply because they live in different areas.
Ofgem publishes regional breakdowns of allowed unit charges and standing charges for gas under the price cap. The table below shows how much Direct Debit customers will pay from 1 October to 31 December 2025, depending on their region (figures include VAT):
| Region | Unit rate (pence per kWh) | Daily standing charge (pence per day) |
| North West | 6.25p | 34.18p |
| Northern | 6.29p | 34.15p |
| Yorkshire | 6.25p | 34.12p |
| Northern Scotland | 6.24p | 34.22p |
| Southern | 6.36p | 33.48p |
| Southern Scotland | 6.24p | 34.24p |
| North Wales & Mersey | 6.30p | 34.43p |
| London | 6.38p | 34.57p |
| South East | 6.18p | 33.60p |
| Eastern | 6.22p | 33.67p |
| East Midlands | 6.14p | 33.75p |
| Midlands | 6.21p | 34.05p |
| Southern Western | 6.50p | 33.64p |
| South Wales | 6.46p | 34.30p |
These regional differences may seem modest, but they can have a significant impact on your bill throughout the entire heating season.
How Payment Type Impacts Cost of Gas per KWh
Many people don’t realise that the method they use to pay their gas bill, not just how much gas they use, can influence the rates they pay.
Ofgem’s price cap differentiates rates depending on payment type. The main categories are:
- Direct Debit – generally the cheapest
- Standard Credit (pay on receipt of bill) – more expensive
- Prepayment Meter – historically the highest, but the gap is narrowing thanks to regulatory changes
The table below shows gas unit and standing charges across payment types for a national average (Great Britain) under the October–December 2025 price cap. These rates are averages; actual regional values may differ.
| Payment Type | Unit rate (pence per kWh) | Standing charge (pence per day) |
| Direct Debit | 6.29p | 34.03p |
| Standard Credit (on receipt of bill) | 6.62p | 41.76p |
| Prepayment Meter | 6.06p | 34.03p (same standing charge as Direct Debit due to levelisation) |
What This Means for You
- Direct Debit remains the most cost-effective option. Because suppliers incur lower administrative and credit risk costs for customers who pay via Direct Debit, those savings are passed through (within the price cap) in lower unit rates.
- Standard Credit customers pay a premium. The higher rates reflect the greater risk and cost to suppliers of issuing and managing bills, chasing payments, handling defaults, etc.
- Prepayment is less penalised than before. Thanks to the “levelisation” allowance introduced in the price cap, prepayment meter users no longer bear a steep standing charge disadvantage. The standing charge for Direct Debit and prepayment customers is now aligned (for many regions).
- The differences may seem small on a per-kWh basis, but over time, especially in winter, they can amount to tens or even hundreds of pounds in extra cost, depending on your consumption and payment method.
Understanding how your payment type affects your unit and standing charges provides a clearer path to optimizing your bill, whether by changing your payment method or switching tariffs and suppliers altogether.
How to Calculate Your Gas Bill
To understand your actual gas costs, you only need two key numbers from your bill:
- Your unit rate (pence per kWh)
- Your daily standing charge
Multiply your household’s energy use by the unit rate, then add the standing charge multiplied by the number of days in your billing period.
Example: Medium-Usage Household
Let’s say you live in the East Midlands, where average gas rates under the October to December 2025 cap are:
- Unit rate: 6.14 p/kWh
- Standing charge: 33.75 p/day
- Annual gas use: 11,500 kWh (typical medium-use UK home)
Your estimated annual bill would be:
Gas usage:
11,500 × £0.0614 = £706.10
Standing charge:
365 × £0.3375 = £123.19
Total estimated bill: £706.10 + £123.19 = £829.29 per year
What Affects Your Total?
Your final figure will depend on:
- Household size and heating habits – larger homes or longer heating hours increase consumption.
- Property efficiency – insulation, double glazing, and modern boilers reduce heat loss.
- Tariff type – fixed, standard, or time-of-use tariffs can shift the balance between standing and unit costs.
- Appliance age and maintenance – older boilers can use more gas for the same output.
To find out more about what you can expect to pay, check out our complete guide on appliance running costs and our guide on the average electricity costs per kWh.
Smart Tips to Reduce the Cost of Gas per KWh in 2025
Even with prices falling slightly, gas remains one of the most significant contributors to household energy costs. The good news is that small, consistent changes can make a noticeable difference over the course of a year. From improving boiler performance to adjusting heating habits, the following strategies can help lower your bill without sacrificing comfort.
1. Lower the Thermostat Even Slightly
Reducing your thermostat setting by just 1°C can lower heating costs by up to 10% per year. Most homes are comfortably warm at 18–19°C rather than 21°C. Pair this with a smart thermostat that learns your schedule, and you can avoid heating empty rooms or times when you’re asleep.
2. Improve Boiler Efficiency
Have your boiler serviced annually to keep it running efficiently and safely. A professional tune-up ensures the burner, heat exchanger, and pressure are all operating correctly. If your boiler is more than 12–15 years old, upgrading to an efficient A-rated boiler could reduce gas usage by 15–20%.
3. Insulate and Draught-Proof
According to the Energy Saving Trust, a typical uninsulated home loses about 25% of heat through the roof, 33% through the walls, and 10-20% through the floor. Investing in loft insulation, cavity wall insulation, or even heavy curtains and draught excluders can significantly reduce the need for heating.
4. Bleed Radiators and Balance the System
If radiators are cooler at the top than the bottom, trapped air is preventing them from heating fully. Bleeding them once a year improves circulation, helping your system heat more efficiently and use less fuel overall.
5. Heat Strategically
Only heat the rooms you use regularly. Turn off radiators in spare rooms, keep interior doors closed, and use thermostatic radiator valves to control each space individually. Zoning your heating in this way can reduce consumption without affecting comfort.
6. Monitor Usage and Adjust Habits
Most modern gas meters, also known as smart meters, allow you to track consumption in real-time. Set a weekly budget, notice patterns, and identify where you’re using the most energy. Cooking with lids on pans, boiling only the water needed, and utilizing residual oven heat for warming are small but cumulative savings.
7. Check Your Tariff Regularly
Even under the price cap, suppliers can charge less. Use a trusted comparison site or contact your supplier directly to review available deals. Switching to a cheaper tariff, or moving from standard credit to Direct Debit payments, could save over £100 a year.
Saving on gas in 2025 isn’t just about reacting to prices but making your home more efficient for the long term. Each improvement, from insulation to smarter controls, compounds to create lasting comfort and lower bills year after year.
What to Expect in 2026: Gas Price Forecasts & Risks
Looking ahead to 2026, the outlook for gas prices is mixed. Much depends on how wholesale markets, policy levers, and infrastructure costs evolve. Below are some of the main forecasts, trends, and caveats to keep in mind:
Forecasts from Analysts
- Cornwall Insight expects the price cap (which includes gas + electricity) to dip slightly in January 2026 before climbing again later in the year.
- Their model suggests a modest fall in early 2026, but with volatility likely as energy markets react to supply, demand, and infrastructure pressures.
- The analyst’s Default Tariff Cap prediction for Q1 2026 estimates the gas portion of a typical bill at £804.47 (for 11,500 kWh usage).
Because the price cap blends gas and electricity costs, these forecasts suggest that gas unit rates may see mild downward pressure in early 2026, before rising again due to non-wholesale cost pressures.
Underlying Drivers That Could Push the Cost of Gas per KWh Up or Down
- Wholesale gas market volatility — Global supply shifts (e.g., LNG exports, production cuts) and geopolitical events continue to be a primary risk factor.
- Network & infrastructure costs — Even if wholesale prices ease, the fixed costs of maintaining pipelines, compression, metering, and system balancing may continue to exert upward pressure on unit and standing charges.
- Policy and regulatory change — Changes in environmental levies, decarbonisation mandates, and subsidies (or lack thereof) can shift cost burdens onto consumers.
- Import dependency & storage — The UK’s reliance on gas imports and storage levels before winter will influence how tight supply margins may become in colder months.
- Lag effects — As we’ve seen before, changes in wholesale rates often take time to fully filter through into the quarterly price cap revisions.
What It Might Mean for You (and What to Watch)
- In January 2026, you may see a slight relief in gas rates, but don’t expect a dramatic drop, as forecasts anticipate only a modest movement.
- By Spring/Summer 2026, rising infrastructure and service costs may offset any wholesale gains, pushing rates upward again.
- The standing charge may become an increasing share of your bill if usage declines or efficiencies improve, making it more important to monitor usage even in milder months.
- Households using more gas or on less efficient systems will feel price changes more acutely; small savings at the margin may make a bigger difference.
Final Thoughts on the Average Cost of Gas per KWh in the UK
The UK gas market may look calmer in 2025, but stability doesn’t mean affordability. Prices are lower than during the peak of the crisis, but they remain significantly higher than before 2022, and that gap isn’t likely to close soon. For most households, the challenge is no longer about surviving price shocks, but about managing sustained higher costs while improving efficiency and control.
Understanding how your bill is structured, from the unit rate and standing charge to how payment type and location affect your payment, gives you real power over your energy use. Even minor efficiency upgrades or behavioural changes can translate into meaningful savings across the year.
Looking ahead to 2026, wholesale markets may ease further, but infrastructure, environmental, and service costs will keep total bills from falling dramatically. The most effective strategy remains a mix of efficiency improvements, smarter heating habits, and tariff awareness.
Households that insulate properly, monitor their usage, and utilize smart heating controls will be best positioned to navigate the coming years and maintain comfort while keeping gas costs low.
FAQs on the Average Cost of Gas per KWh in the UK
What is the Average Cost of Gas per kWh in the UK?
Under the October–December 2025 Ofgem price cap, the average gas unit rate is 6.29 pence per kWh (including VAT).
What Is the Future Price of Gas in the UK?
Forecasts suggest a modest easing in early 2026, but substantial downward movement will be constrained by fixed costs, policy levies, and network charges. Wholesale markets remain volatile, and those structural costs tend to lag behind changes in wholesale pricing.
Is It Cheaper to Use Gas or Electricity in the UK?
Generally, gas is much cheaper per kWh than electricity in the UK. Under the current cap, electricity unit rates are roughly four times higher than gas. However, the total cost depends heavily on how you use each energy type (heating, appliances, efficiency), so electric heating or high consumption of electric devices can shift the balance.
How Much Does It Cost to Run a Gas Oven for 1 Hour in the UK?
A gas oven typically uses around 1.5 to 2 kWh per hour, depending on the model and temperature. At an average gas rate of 6.29 p/kWh, that equates to roughly 9–13 pence per hour, which is usually half the cost of running an electric oven for the same period.
Is 200 kWh a Month for Gas a Lot in the UK?
For gas, 200 kWh per month is a relatively low consumption. The average UK household uses about 11,500 kWh per year (around 950 kWh per month) according to Ofgem’s medium-use benchmark. A home using only 200 kWh monthly is likely a small flat with minimal heating needs, or someone using gas solely for cooking and hot water.
What Is the Cheapest Way to Heat Your House in the UK?
For most homes connected to the gas grid, gas central heating remains the most economical option. However, modern air-source heat pumps and infrared panel systems can rival gas costs in well-insulated homes, especially when paired with smart controls or solar power.
Sources and References
Ofgem – Energy price cap explained
UK Parliament – Gas and electricity prices during the ‘energy crisis’ and beyond
Ofgem – Average gas and electricity usage
Ofgem – Get energy price cap standing charges and unit rates by region
Energy Saving Trust – Home insulation to reduce home heat loss
Cornwall Insight – Predictions & Insights into the Default Tariff Cap (Price Cap)