Despite high electricity prices over the last few years, we’re seeing some stability in wholesale prices and UK households are able to switch electricity suppliers. Despite the recent 5% increase announcement in the price cap for January 2024, average electricity prices are much cheaper than they have been.
For information on non-domestic electricity please see our business electricity prices page.
Compare Electricity Prices: 2023 | Average Price Per kWh & Tariffs
Compare Electricity Prices With Trusted UK Suppliers
How Much Is Electricity In 2024?
Ofgem has announced that the typical UK household will spend £1,928 for their energy annually. This amount will be reviewed again in March 2024. Worried about electricity prices? Now is a great time to compare prices.
You can expect to see cheaper pricing from electricity suppliers, making it easier for your household or business to switch to a better deal.
The price cap doesn't restrict your overall bill as it only places a cap on the unit price that is charged per kWh. This means if you use more, you pay more.
Factors such as your contract type, location, and consumption will continue to influence your electricity rates.
Price Cap History
The annual price is for direct debit customers and illustrates Ofgem's price cap changes over the previous few years.
|
Date |
Annual price for typical usage |
% change vs previous |
|---|---|---|
|
From January 2024 |
£1,928 |
+5% |
|
Winter 2023 |
£1,834 |
-7% |
|
Summer 2023 |
£1,976 |
-37% |
|
Spring 2023 |
£3,116 |
-23% |
|
From January 2023 |
£4,059 |
+20% |
|
Autumn 2022 |
£3,371 |
+80% |
|
Summer 2022 |
£1,877 |
N/A |
|
From January 2024 |
|
|---|---|
|
Unit Price (p/per kWh) |
28.62p |
|
Standing Charge |
53.35p |
How Much Is Electricity per kWh in the UK?
This table shows what the average unit rate of electricity and the average standing charge is in the UK for 2024 based on the price cap level set by Ofgem.
What Electricity Tariffs Are Available?
With so many options, it can be confusing to navigate the best tariff for you. However, once you think about how you use electricity in your home or business, it becomes much simpler to choose an electricity tariff. You can pick from the following:
Fixed TariffsChoosing a fixed electricity tariff offers security surrounding the amount you pay to the energy supplier each month. This means that you have a set price for each unit of electricity you use. These tariffs offer protection against price increases. It’s important to note that your energy bills are based on consumption so they may appear to be higher during colder months. Energy suppliers usually average this cost out over the year. |
Pre-Payment TariffsPre-payment tariffs allow households to purchase electricity in advance of using it. You can top up your electricity meter online, or in-store via a card or key. This is a great way to closely manage your electricity spending. It is important to note that unit prices are usually higher than other tariffs and there’s always the risk of running out of electricity at an inconvenient time. |
Variable TariffsA standard variable contract, as it is sometimes known, is very popular in the UK. Even though the cost of electricity goes up and down in line with the electricity market, there are no exit fees and you’re free to switch suppliers at any time. |
Green TariffsMost electricity suppliers offer green tariffs providing you with energy from renewable sources. These tariffs can be either fixed or variable and are often cheaper than standard tariffs. |
Dual Fuel TariffsChoosing separate electricity and gas suppliers can create more admin, so many UK households select a dual fuel tariff for more convenience. Dual fuel tariffs can be either fixed or variable and may offer discounts, but this varies by supplier. |
Economy 7 or 10Economy 7 & 10 tariffs are for those night owls who use more electricity at night. The cost of electricity is much cheaper after a certain time and the price per unit can fluctuate based on the market price. |
UK Electricity Prices By Region
We’ve broken down regional electricity prices per kWh so that you can see how the area you live in impacts the price you pay for electricity.
|
Region |
Average Single Rate Unit Price 2024 |
Average Standing Charge (p) |
|---|---|---|
|
North West |
28.44p |
51.8p |
|
Northern |
27.81p |
57.44p |
|
Yorkshire |
27.79p |
56p |
|
Northern Scotland |
28.48p |
59.38p |
|
Southern |
28.79p |
49.97p |
|
Southern Scotland |
28.16p |
62.08p |
|
North Wales & Merseyside |
29.57p |
62.21p |
|
London |
29.38p |
38.50p |
|
South East |
29.38p |
47.56p |
|
Eastern |
29.22p |
44p |
|
East Midlands |
28.02p |
50.69p |
|
Southern Western |
28.43p |
58.68p |
|
South Wales |
28.71p |
54.21p |
|
UK Average |
28.62p |
53.35p |
All data comes from Ofgem.
Who Is The Cheapest Electricity Supplier In The UK?
As the electricity prices change so quickly, there can be a new cheapest supplier almost daily. The best way to answer this question is to compare electricity prices now to ensure you’re getting accurate pricing information based on your consumption and region.
The UK’s largest energy suppliers are:
- British Gas
- E.ON Next
- OVO Energy
- EDF Energy
- Scottish Power
Switching electricity suppliers is still a good idea if you can get a fixed-rate tariff that is cheaper than the future Ofgem price cap projections. The mindset has switched from saving money on your current deal to managing the price of your electricity bill against future increases.
For business energy customers, the mindset is similar. Whilst there is no price cap for business energy, prices are increasing and there are greater switching options for businesses looking to manage the cost of their energy.
How Much Should I Be Spending On Electricity?
What is seen as the normal amount should be a figure you aim for. Reducing your electricity consumption where possible is one of the quickest ways to save money along with grabbing a fixed-rate deal at the right time.
According to the Department for Business, Energy & Industrial Strategy (BEIS), the average UK household uses 3,721 kWh per year.
Here are the consumption levels that are used by Ofgem to calculate the price cap which are seen as the average.
|
Household size |
Average electricity consumption (annual kWh) |
|---|---|
|
Apartment/ 1-bedroom house |
1,800 |
|
2-3 bedroom house |
2,700 |
|
4+ bedroom house |
4,100 |
What Is The Cheapest Way To Pay For Electricity?
Everyone is looking for ways to save money. Despite the obvious tip of using less electricity, the way you pay your energy supplier may also impact the price you pay. The calculations below are based on the Ofgem Price Cap figures for Q1 of 2024 and an assumed average consumption of 2,700 kWh of electricity annually (2-3 bedroom house).
- Direct Debit: £967
- Pre-Payment: £963
- Standard Credit: £1,032
Fixed Or Variable Electricity Tariffs?
An energy tariff is how suppliers charge a customer for gas and electricity. Energy tariffs are made up of two costs, a unit rate and a standing charge.
Fixed Rate TariffsA fixed-rate electricity tariff means your unit rate and the standing charge will remain the same for the duration of your agreement. The annual overall cost of your electricity bill will depend on your consumption - only the price per kWh of electricity will be fixed.
|
Variable Rate TariffsVariable tariffs mean your unit rate and standing charge can increase or decrease at any time. If you’re on this type of tariff, energy suppliers may change the price of your rates in line with wholesale energy prices.
|
Electricity Comparison FAQs
-
Are Economy 7 Electricity Tariffs Cheaper?
Economy 7 tariffs can be cheaper depending on your use of energy. For example, if the majority of your usage is during off-peak hours it may be cheaper to switch to an Economy 7 tariff.
Economy 7 hours differ depending on the electricity supplier. The most common hours this window falls on is between 10 pm and 8:30 am. You should consider this tariff carefully as it may end up costing you more as peak unit rates are often higher priced than other tariffs.
-
How Can I Reduce My Electricity Bill?
Whilst switching your electricity supplier will save you the largest amount, you can change simple everyday habits to make sure you have some extra cash in your pocket every month.
Turn appliances off at the wall
Leaving your appliances on standby can kill all your electricity savings throughout the year. Make it a part of your night-time schedule or integrate it with your smart home schedule. The Energy Savings Trust estimates that the average household will save up to £80 a year with this simple change.
Old appliances?
You may be reluctant to throw out an appliance that is still going strong, but if they have a poor energy efficiency rating, it could be the invisible money pit in your home. The Energy Savings Trust estimates that simply upgrading a fridge freezer to an A+++ model from an A+ will save you £300 a year.
Get a smart meter
Keeping a watchful eye on your electricity usage can ensure your energy bills are not running away. It will be a reminder of how much leaving a light, TV or even appliances costs. You can use the smart meter to identify anything in your home that is driving up the cost of your electricity bills.