Guides / 3 min read

What is a unit rate on an energy bill?

The unit rate is the price of one kWh. What a kWh is, what it costs under the price cap in each region, and why some bills show two rates.

The unit rate is the price of one kilowatt hour (kWh) of energy, shown in pence. Your bill is the unit rate times the kWh you use, plus the standing charge for each day.

What a kWh is

A kWh is the energy a 1 kilowatt appliance uses in an hour. A 1 kW heater left on for 10 hours uses 10 kWh. Your meter counts kWh for electricity, and for gas it counts kWh too (some gas meters show cubic metres, which your supplier converts).

What a unit costs under the cap

For 1 October to 31 December 2026, the Great Britain average is 26.32p per kWh for electricity and 7.97p per kWh for gas, for Direct Debit. By region, electricity ranges from 25.36p in East Midlands to 27.86p in Merseyside and Northern Wales, and gas from 7.82p in East Midlands to 8.17p in Southern England.

At the Great Britain average, 10 kWh of electricity costs £2.63 and 10 kWh of gas costs £0.80, before any standing charge. Every region's rates are in the price cap by region table.

Source: Ofgem energy price cap Cap period from

Where to find it on a bill

Look for "unit rate" or "price per kWh" in pence, next to the standing charge in pence per day. A bill with an Economy 7 or similar meter shows two unit rates, one for each period, and your readings for each. Check that the rate on the bill matches the tariff you chose: the energy page lets you enter your own rates and compare them with the cap for your region.

Short answers

What is a kWh?

A kilowatt hour is the amount of energy a 1 kilowatt appliance uses in an hour. Both gas and electricity are measured and billed in kWh.

Is the unit rate the whole cost of my energy?

No. Your bill is the unit rate times the kWh you use, plus the standing charge for every day. The unit rate is only the first part.

Why do some bills show two unit rates?

Meters such as Economy 7 charge one rate for a cheaper night period and another for the rest of the day. The bill shows a rate for each, with a separate reading for each.

Sources

Wording checked . Rules change, so check the linked sources before you act.

More guides

Data sources