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Electricity costs

Cost of electricity in UK and current price per kWh

As of 1 October 2026, the main reference point for most households is the Ofgem default-tariff cap. It does not make every bill the same, but it gives a clear benchmark for UK electricity prices and the current price per kWh.

For 1 October to 31 December 2026, Ofgem says the average default-tariff electricity rate for Direct Debit customers is 26.32p per kWh with a 54.83p daily standing charge in England, Scotland, and Wales. · Updated 1 October 2026

Electricity cost, storage, and heat-pump decisions

UK electricity prices per kWh: the quick answer

Typical household

Ofgem says the default-tariff cap for a typical dual-fuel household paying by Direct Debit is £1,723 per year between 1 October and 31 December 2026.

Electricity rate

The England, Scotland, and Wales average electricity rate in that cap period is 26.32 pence per kWh with a 54.83 pence daily standing charge.

What that really means

The cap is a unit-rate and standing-charge limit, not a promise about what any one home will spend. Real bills still move with usage, payment type, meter type, and region.

That is the main current answer for electricity cost per kWh in the UK. It is also the quickest benchmark if you are comparing broader UK electricity prices.

The electricity unit-rate increase from 26.11p to 26.32p is much smaller than the 4% dual-fuel-cap headline, while the average electricity standing charge fell from 57.19p to 54.83p a day. Ofgem also states that electricity has no VAT from 1 October 2026 to 31 March 2027, so the two cap periods cannot be compared directly without that change.

Source: Ofgem energy price cap unit rates and standing charges, checked on 1 October 2026.

For the generation context behind today's news, read our analysis of the UK renewable electricity record in 2026.

Electricity cost still shapes three big retrofit decisions

Solar + storage

When electricity is expensive enough to stay visible on the bill, battery storage and export timing questions get more serious. The site layout and electrical context then matter more, not less.

Heat pumps

People often jump straight from “electricity costs more than gas” to “heat pumps will be expensive to run.” That skips the bigger question: whether the system and fabric assumptions are actually right.

Usage

Standing charges, consumption profile, and whether the property can shift load all matter. The unit price is only one part of the decision.

What the Ofgem cap does and does not cover

Who it covers

The price cap applies to households on standard variable tariffs, including default tariffs. It is not a fixed-tariff promise and it is not the same thing as a personal bill guarantee.

What moves

Ofgem sets a cap on unit rates and standing charges. Your actual rates still vary by region, payment method, meter type, and tariff setup.

Why the benchmark still matters

Even though it is an average benchmark, it is still the quickest current official reference when you want to sense-check battery economics, export decisions, or heat pump running-cost assumptions.

Source checked on 1 October 2026: Ofgem energy price cap unit rates and standing charges.

Cost of electricity in UK FAQ

Current benchmark

What is the quick current answer?

A practical national benchmark for 1 October to 31 December 2026 is 26.32p per kWh with a 54.83p daily standing charge on the Ofgem default-tariff average.

Cap limits

Does that number apply to every bill?

No. It is the quickest official benchmark, but real bills still vary by region, payment method, tariff, and how much electricity the home actually uses.

Retrofit decisions

Why does this page matter for retrofits?

Because electricity cost sits underneath battery economics, heat pump running-cost assumptions, and the question of whether a home can shift or store electricity more intelligently.