Your guide to UK electricity kWh rates and pricing.
Understanding your electricity bill can be a puzzle, especially when ‘kWh’ pops up everywhere. However, it's simpler than it looks once you get the hang of it. Whether you're trying to cut costs at home or in the workplace, knowing what ‘kWh’ actually means is pretty useful. We're here to break it all down for you and make kilowatt hour (kWh) rates and pricing easy to grasp.
Understanding kWh rates.
Understanding kWh rates may seem tricky at first, but it’s much simpler once you go back to the basics. In this section, we:
Explain what a kilowatt hour actually is with a simple breakdown.
Share some everyday kWh examples, from a quick shower to a day's laptop use.
Show you how to work out the electricity kWh price.
Highlight the key factors affecting UK electricity prices, from wholesale energy costs to supplier pricing.
Watts, kilowatts and kilowatt hours.
Let’s start by explaining what a kilowatt (kW) actually is. Put simply, it’s a unit of energy that measures the amount of electricity you use.
One kW equals one thousand watts (W) of energy. So, if you have a 100-watt lightbulb and leave it on for 10 hours — that’s 1 kilowatt hour (kWh) of energy!
Your electricity meter tracks how many kWh your home uses. Then your supplier uses this figure to calculate your bill.
Popular examples from around your home.
Here are some examples of what 1 kWh looks like in everyday use:
Using an electric shower for 6 minutes.
Cooking in an oven for 30 minutes.
Ironing for 60 minutes.
Watching a 42” LED TV for 10 hours.
An electric blanket switched on overnight.
Using a modern laptop on a standard working day.
All new electrical appliances and lights have an energy label showing you how much energy they consume in kWh. This makes it much easier to choose energy efficient products.
How do we work out the electricity kWh price?
Electricity pricing in the UK has a two main parts:
Your unit rate (the price per kWh).
Your standing charge (the fixed daily cost).
We multiply your unit rate by the number of kWh you use, and the standing charge is added on top.
What factors influence the price of electricity in the UK?
Wholesale energy prices.
As a supplier, we buy energy on the wholesale market, and those prices fluctuate. So if the price of gas or other fuels goes up, you’ve guessed it, so does the cost of generating electricity.
Government policies and environmental levies.
Factors like renewable energy targets and carbon taxes. Though they have the possibility to make a positive long term impact, prices may be pushed up.
Transmission and distribution costs.
Upkeep of the network of wires and cables that bring electricity to your home isn't cheap.
Supplier pricing.
Every supplier has its own way of setting prices that take multiple factors into account, including customer service costs and profit margins.
What are the latest UK electricity kWh rates?
It’s fair to say the energy market has been pretty up and down lately. Global events such as the increase in wholesale gas prices have seen prices soar. Prices tend to fluctuate seasonally, a bit like a wave, with higher demand in winter.
Keeping things fair is important. That’s why the energy regulator Ofgem sets a price cap to protect you from big price hikes. The cap limits what suppliers can charge for the daily standing charge and per kWh. Remember, the cap limits what suppliers can charge per unit, so your bills can still increase if you use more energy.
Learn more about Ofgem's energy price cap and how it could affect your home.
Why do electricity prices vary by region?
Then there’s location. Where you live matters when it comes to electricity prices. The reason for this is often down to the cost of maintaining the local grid infrastructure — that’s the electrical network that gives every home and business its energy.
Some parts of the country with older, less efficient networks experience higher costs. How much energy your neighbours are using, and the cost of getting that energy to your door, also influence prices.
How to calculate the price of electricity per kWh.
Let’s dust off our high school maths skills. Take one 1,000 watt electric heater. Imagine you leave that heater on every day for 3 hours. To calculate the cost you simply multiply the appliance’s kW rating by the amount of hours it’s in use and the electricity price. This equation will clear up any confusion:
1kW x 3 hours (how many hours it’s in use) x electricity cost per kWh
All appliances use energy in the same way. However, costs can vary because how often and for how long you use them also varies. Using the kettle for a cuppa only takes up a few minutes each day (unless you’re a bit of a tea fanatic), while a freezer is on standby all day because no one wants melted ice cream! There are online tools available to help you calculate your electricity use.
Popular appliances and how much they cost to run.1
| Appliance type | Daily active cost | Daily standby cost | Annual standby cost |
|---|---|---|---|
Desktop computer | £3.06 | £0.04 | £13.39 |
Dishwasher | £8.66 | £0.02 | £7.44 |
Fridge | £0.16 | £0.16 | £56.89 |
Kettle | £20.38 | £0.0001 | £0.74 |
LCD TV (120 W) | £1.22 | £0.02 | £5.70 |
Microwave | £10.19 | £0.02 | £5.95 |
Phone charger | £0.03 | £0 | £0.64 |
Tumble dryer | £30.56 | £0.02 | £6.45 |
Washing machine | £14.26 | £0.02 | £6.45 |
1 Calculations based on the 28.34 p/kWh Ofgem electricity price cap rate, effective 1 April to 30 June 2025. Rate is subject to change and actual costs may differ. See Ofgem for current pricing.
The average kWh use and cost for a household.
The average UK household uses around 2,900 kWh of electricity per year. Smaller households use less, and larger households use more. Of course, it all varies depending on your lifestyle and the appliances you use the most.
This table2 gives you an idea of the average kWh usage for typical households across the UK:
| Energy use | Example – home type and number of residents | Typical annual gas use (kWh) | Typical annual electricity use (kWh) | Typical annual electricity use (multi-rate, such as Economy 7) (kWh) |
|---|---|---|---|---|
Low | Flat or 1-bedroom house - 1 to 2 people | 7,500 | 1,800 | 2,200 |
Medium | 2-3 bedroom house - 2 to 3 people | 11,500 | 2,700 | 3,900 |
High | 4+ bedroom home - 4 to 5 people | 17,000 | 4,100 | 6,700 |
2 Average gas and electricity use sourced from Ofgem, effective 1 April to 30 June 2025. Rates are subject to change and actual costs may differ. Visit Ofgem for current pricing.
How to reduce costs and save on your energy bills.
There are lots of ways to lower your energy bills, from weighing up energy suppliers on comparison websites to switching off your TV (goodbye standby).
Energy-efficient appliances can use less electricity, just check the product’s label for guidance. Switching to LED lighting and turning off standby power could also make a big difference, while Smart meter in-home displays are useful for tracking your electricity use in real-time. Our energy saving tips is packed with useful resources to help you make a start.
You can also find some great government funded schemes to help boost how efficient you are with your energy use and make a positive impact.