Last updated: January 2026 Reviewed by: UK Energy Market Analyst Regulator: Ofgem

Compare Energy Unit Rates Across Suppliers (UK 2026 Guide)

An energy unit rate is the price you pay for each unit of energy you use. In 2026, unit rates account for the largest share of total cost for medium and high-usage households.

24-32p
Electricity per kWh
6-9p
Gas per kWh
£100s
Potential Savings

What Is an Energy Unit Rate?

  • Electricity is measured in kilowatt-hours (kWh)
  • Gas is also measured in kWh
  • The usage-based part of your energy bill
  • More energy use = more important unit rate

The unit rate is the usage-based part of your energy bill. The more energy you use, the more important the unit rate becomes.

Why Comparing Unit Rates Is Crucial in 2026

Bill Composition

In 2026, energy bills are made up of two parts:

Standing charges: Fixed daily cost
Unit rates: Cost per kWh

For medium and high-usage households, unit rates account for the largest share of total cost.

Savings Potential

Even small differences in unit rates can mean significant savings:

  • 1p difference per kWh = £10 per 1000 kWh
  • Medium household: 2,900 kWh electricity
  • Medium household: 12,000 kWh gas
  • Potential savings: £100s per year

Key Fact:

Comparing unit rates is essential for households that use a lot of energy.

Supplier Variations

Suppliers set different unit rates based on:

  • Wholesale energy purchasing strategy
  • Contract length and risk appetite
  • Regional network costs
  • Tariff structure

The same household can pay very different unit rates. Brand size does not guarantee cheaper energy.

Average UK Energy Unit Rates (2026)

Electricity

24p–32p
per kWh

Average range across UK regions

Gas

6p–9p
per kWh

Average range across UK regions

Important: These are averages only. The cheapest rates are often available on fixed tariffs below the price cap. Unit rates vary by postcode, tariff, and payment method.

Unit Rates on Fixed vs Variable Tariffs

Fixed Tariffs

  • Usually Cheapest Unit Rates
  • Lock in unit rates for 12–24 months
  • Often priced below the Ofgem price cap
  • Best for price certainty and savings
  • These typically offer the lowest unit rates available

Variable Tariffs

  • Unit rates rise or fall with the price cap
  • No exit fees
  • Usually more expensive over time
  • They are rarely the cheapest option
  • Flexibility to switch anytime

Electricity Unit Rates vs Gas Unit Rates

Electricity Unit Rates

  • Higher unit rates (24p–32p per kWh)
  • Strongly influenced by renewable generation and grid costs
  • Biggest savings come from fixed tariffs
  • Critical for electric heating and EV owners
  • Economy 7 tariffs offer day/night rates

Gas Unit Rates

  • Lower unit rates (6p–9p per kWh)
  • Heavily affected by global markets
  • Still a major cost for high-usage homes
  • Fixed tariffs offer price protection
  • Comparing both together gives the clearest picture

Cheapest Unit Rates by Household Type

High-Usage Homes

  • Unit rates matter more than standing charges
  • Fixed tariffs with low kWh rates deliver the biggest savings
  • Focus on lowest overall annual cost
  • Potential savings: £200+ per year
  • Compare both electricity and gas rates

Low-Usage Homes

  • Standing charges matter more than unit rates
  • Lowest unit rate is not always cheapest overall
  • Balance between standing charges and unit rates
  • Special tariffs for low consumption
  • Focus on total annual cost

Electric Heating & EV Owners

  • Unit rates are critical for cost control
  • Economy 7 or smart tariffs may help
  • High electricity consumption increases importance
  • Fixed tariffs provide budget certainty
  • Compare specialized EV tariffs

Special Considerations

Energy Price Cap

The energy price cap:

  • Sets maximum unit rates on variable tariffs
  • Does not apply to fixed deals
  • Is not a guarantee of the cheapest price
  • Many fixed tariffs offer lower unit rates than the cap

Economy 7 Unit Rates

Economy 7 tariffs have:

  • Day rate (higher)
  • Night rate (lower)
  • Savings depend on overnight usage
  • Need 35–40% usage overnight to benefit
  • Daytime-heavy usage can be more expensive

Prepayment Meters

Prepayment customers often face:

  • Higher unit rates
  • Fewer fixed tariff options
  • Competitive prepay tariffs do exist in some regions
  • Comparison is essential for best rates

⚠️ Why the Lowest Unit Rate Isn't Always the Cheapest Deal

A tariff with the lowest unit rate may have:

Total annual cost matters more than any single figure. Always compare complete tariff details.

How to Compare Energy Unit Rates Properly

1. Enter Your Postcode

Unit rates vary by region. Accurate comparison requires your specific location.

  • Regional network costs differ
  • Supplier availability varies
  • Postcode-specific deals exist

2. Enter Realistic Annual Usage

Accurate usage figures ensure proper cost calculations.

  • Use actual kWh figures if available
  • Estimate based on household size
  • Consider heating type and appliances

3. Compare Total Annual Cost

Compare all elements together:

  • Electricity unit rate
  • Gas unit rate
  • Standing charges
  • Total annual cost
  • Contract terms and exit fees

Do You Need Contact Details to Get a Quote?

You can compare unit rates instantly without contact details. However:

Basic contact details are required by suppliers, in line with Ofgem regulations.

Find Your Cheapest Unit Rates Today

In 2026, comparing unit rates is essential — especially for households that use a lot of energy. The cheapest unit rates are often found on fixed tariffs and postcode-specific deals.

Contact Us