Did you know the energy price per kWh in the UK varies from region to region? Discover why there’s no universal UK kWh price for your gas and electricity, and what influences the cost according to where you live.
Why do energy prices vary by region?
The price you pay for your energy depends on where you live because there are several local factors in play when calculating the costs of energy. They include:
- The number of customers in your region: This affects the wholesale costs. The more customers there are, the easier it is for suppliers to negotiate bigger discounts when they buy energy in bulk.
- The region’s energy usage: Climate plays a big role in how much energy is consumed in different parts of the UK. More northerly regions use more electricity in winter to heat their homes, which influences the price of energy.
- Transport charges: Energy is delivered to your home via a series of transmission and distribution networks. These are operated by different companies who charge different amounts depending on where they’re based.
- Local generator costs: Some suppliers buy energy from locally based suppliers, such as gas-powered plants and large-scale solar and wind farms. These prices may be fixed in advance based on historic prices as well as estimated usage. If prices drop, or demand is higher than expected, it can affect prices at a local level.
These regional variations are reflected in Ofgem’s energy price cap. This sets a limit on how much your supplier can charge you for gas and electricity. Instead of charging a single flat rate for the whole UK, Ofgem sets different caps for different parts of the country.
How are energy prices set?
The price you pay for your energy is determined by several factors:
- Wholesale costs: The actual cost of the energy produced makes up around 40% of the total cost of supplying energy to your home.
- Network costs: The second-largest cost is that of transporting the energy to your region and home.
- Operating costs: Your supplier’s running costs.
- VAT: Domestic customers currently pay 5% VAT on gas and electricity.
- Markup: The amount added by the supplier to allow it to make a profit.
- Cost of government schemes: These include the costs of various social and environmental schemes.
- Other: Includes small costs like smart meter installations and maintenance.
How much is electricity per kWh by region?
The regional cost of electricity per kWh shown below comes from Ofgem’s price cap. The prices shown are based on a household on a standard variable rate paying by Direct Debit, and include VAT.
| Region | Single rate electric cost per kWh (1 April - 30 June 2024) | Multi rate (inc. Economy 7) electric cost per kWh (1 April - 30 June 2024) |
|---|---|---|
|
UK average
|
24.50 pence per kWh
|
23.19 pence per kWh
|
|
London
|
25.72 p/kWh
|
24.22 p/kWh
|
|
South East
|
25.29 p/kWh
|
23.83 p/kWh
|
|
Southern
|
24.66 p/kWh
|
23.33 p/kWh
|
|
South Western
|
24.21 p/kWh
|
22.91 p/kWh
|
|
South Wales
|
24.51 p/kWh
|
23.21 p/kWh
|
|
Midlands
|
23.84 p/kWh
|
22.67 p/kWh
|
|
North Wales and Mersey
|
25.42 p/kWh
|
23.99 p/kWh
|
|
North West
|
24.67 p/kWh
|
23.27 p/kWh
|
|
Southern Scotland
|
23.97 p/kWh
|
22.71 p/kWh
|
|
Northern Scotland
|
24.96 p/kWh
|
23.65 p/kWh
|
|
Northern
|
23.36 p/kWh
|
22.21 p/kWh
|
|
Yorkshire
|
23.36 p/kWh
|
22.26 p/kWh
|
|
East Midlands
|
23.77 p/kWh
|
22.59 p/kWh
|
|
Eastern
|
25.26 p/kWh
|
23.83 p/kWh
|
What is the cost of gas per kWh by region?
Again, the figures below are based on Ofgem’s energy price cap (effective 1 April to 30 June 2024) based on a standard variable tariff, paid for by Direct Debit, and VAT is included.
| Region | Gas cost per kWh |
|---|---|
|
UK average
|
6.04 pence per kWh
|
|
London
|
6.11 p/kWh
|
|
South East
|
5.97 p/kWh
|
|
Southern
|
6.12 p/kWh
|
|
South Western
|
6.33 p/kWh
|
|
South Wales
|
6.25 p/kWh
|
|
Midlands
|
6.00 p/kWh
|
|
North Wales and Mersey
|
6.01 p/kWh
|
|
North West
|
5.96 p/kWh
|
|
Southern Scotland
|
5.96 p/kWh
|
|
Northern Scotland
|
5.96 p/kWh
|
|
Northern
|
6.03 p/kWh
|
|
Yorkshire
|
6.01 p/kWh
|
|
East Midlands
|
5.90 p/kWh
|
|
Eastern
|
5.96 p/kWh
|
How much are regional electricity standing charges?
The following figures are based on Ofgem’s energy price cap (1 April to 30 June 2024) for standard variable tariffs, paid for by Direct Debit, with VAT included.
| Region | Single rate electricity daily standing charge | Multi-rate electricity daily standing charge |
|---|---|---|
|
UK average
|
60.10 pence per day
|
60.33 pence per day
|
|
London
|
40.79 p/kWh
|
40.75 p/kWh
|
|
South East
|
56.90 p/kWh
|
57.40 p/kWh
|
|
Southern
|
63.33 p/kWh
|
63.72 p/kWh
|
|
South Western
|
67.19 p/kWh
|
67.93 p/kWh
|
|
South Wales
|
63.26 p/kWh
|
62.80 p/kWh
|
|
Midlands
|
62.73 p/kWh
|
62.82 p/kWh
|
|
North Wales and Mersey
|
67.04 p/kWh
|
66.94 p/kWh
|
|
North West
|
51.19 p/kWh
|
51.01 p/kWh
|
|
Southern Scotland
|
63.31 p/kWh
|
64.56 p/kWh
|
|
Northern Scotland
|
61.10 p/kWh
|
62.25 p/kWh
|
|
Northern
|
71.20 p/kWh
|
70.94 p/kWh
|
|
Yorkshire
|
67.44 p/kWh
|
67.40 p/kWh
|
|
East Midlands
|
56.00 p/kWh
|
55.72 p/kWh
|
|
Eastern
|
49.92 p/kWh
|
50.46 p/kWh
|
How much are regional gas standing charges?
From 1 April to 30 June 2024, gas standing charges for the regions of the UK are:
| Region | Gas daily standing charges |
|---|---|
|
UK average
|
31.43 pence per kWh
|
|
London
|
32.04 p/kWh
|
|
South East
|
30.94 p/kWh
|
|
Southern
|
30.78 p/kWh
|
|
South Western
|
30.97 p/kWh
|
|
South Wales
|
31.75 p/kWh
|
|
Midlands
|
31.45 p/kWh
|
|
North Wales and Mersey
|
31.89 p/kWh
|
|
North West
|
31.62 p/kWh
|
|
Southern Scotland
|
31.67 p/kWh
|
|
Northern Scotland
|
31.58 p/kWh
|
|
Northern
|
31.56 p/kWh
|
|
Yorkshire
|
31.56 p/kWh
|
|
East Midlands
|
31.11 p/kWh
|
|
Eastern
|
31.01 p/kWh
|
The figures are based on Ofgem’s current energy price cap, effective 1 April to 30 June 2024. They’re based on a standard variable tariff paid for by Direct Debit, including VAT. See Ofgem for prepayment and standard credit rates by region.
Which regions are the most expensive for energy?
London is the most expensive region for energy - its electricity unit price (25.72 p/kWh) is comfortably higher than elsewhere. London also has the highest gas daily standing charges (32.04 p/day). However, it does have the cheapest electricity standing charge (40.79 p/day) by some distance.
The following table gives a breakdown of both the cheapest and most expensive regions per metric:
| Metric | Most expensive regions | Cheapest regions |
|---|---|---|
|
Electricity unit costs (per kWh)
|
London (25.72 p/kWh)
|
Northern/Yorkshire (23.36 p/kWh)
|
|
Electricity standing charge (per day)
|
Northern (71.20 p/day)
|
London (40.79 p/day)
|
|
Gas unit costs (per kWh)
|
South Western (6.33 p/kWh)
|
East Midlands (5.90 p/kWh)
|
|
Gas standing charge (per day)
|
London (32.04 p/day)
|
Southern (30.78 p/day)
|
All prices include VAT and are based on Ofgem’s price cap from 1 April to 30 June 2024 for payments by Direct Debit.
Why are energy prices so high?
UK energy prices are governed by the price of gas, which is also used to determine the wholesale price of electricity. While prices continue to fall from the highs experienced in 2022 after Russia’s invasion of Ukraine, they are still higher than pre-pandemic levels. Find out more with our gas and electricity prices forecast for 2024.
How do energy costs differ by payment method?
Ofgem sets different price caps for those paying by Direct Debit, those paying on standard credit, and those paying through a prepayment meter. While Direct Debt has traditionally been the cheapest way to pay for energy, that’s no longer the case as of April 2024. Currently, those on prepayment meters pay less for both gas and electricity.
| Payment method | Electricity cost per kWh | Electricity daily standing charge | Gas cost per kWh | Gas daily standing charge |
|---|---|---|---|---|
|
Direct Debit
|
24.50 p/kWh
|
60.10 p/day
|
6.04 p/kWh
|
31.43 p/day
|
|
Standard credit
|
25.79 p/kWh
|
65.88 p/day
|
6.36 p/kWh
|
35.21 p/day
|
|
Prepayment
|
23.72 p/kWh
|
60.10 p/day
|
5.82 p/kWh
|
31.43 p/day
|
Electricity prices are for single-rate tariffs. All prices include VAT.
How can I keep energy bills down?
There are many ways you can keep your energy bills lows, including cutting your consumption. Another way to cut your bills is to compare energy suppliers and tariffs to find the best deal.
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