Electricity cost per kWh in the UK

The current average electricity cost in the UK is 23.53p per kWh, with a daily standing charge of 60.12p. These rates are based on Ofgem’s energy price cap for households on standard variable tariffs paying by Direct Debit.

If you’re on a fixed or tracker tariff with So Energy, these rates will likely be lower.

Regional differences

Electricity rates vary in different parts of the UK. For example, as of October to December 2025, the average unit rate in London is around 23.06p per kWh, while in the South West it’s higher at 24.38p per kWh (Ofgem).

These variations happen because some areas are more expensive to supply. Factors include the distance from power stations, local network maintenance costs, and regional demand. Areas with older infrastructure or more rural networks often face higher charges to cover upkeep and delivery.

Factors influencing electricity costs

There are several factors that influence why rates rise and fall:

• Wholesale energy prices. The biggest driver of costs, as suppliers have to pay market rates for electricity which can change dramatically.
• Infrastructure costs. Maintaining and upgrading the energy network to keep supply reliable.
• Government policy and levies. Funding renewable energy schemes and social support programmes adds to overall costs.

As we've mentioned above, these rates apply on standard variable tariffs, the default tariff for all energy suppliers. By fixing your rates on a fixed or tracker tariff, you can reduce your rates, and get 100% renewable electricity at no extra cost. Find out how to choose the right tariff for you in our blog.

Understanding your electricity bill

Your bill has three main components:

• Unit rate
  This is the price you pay for each kilowatt-hour (kWh) of electricity you use. As of October 2025, the average unit rate is 23.53p per kWh.
• Standing charge
  A fixed daily amount, around 60p per day, that covers essential costs like network maintenance, meter services, supplier operations and government schemes.
• VAT
  A government tax added to your bill, currently set at 5% for domestic energy.

How to read and understand your bill

• Check your tariff details. Look for your unit rate and standing charge, as these determine your costs.
• Review your energy use. Your bill shows how many kWh you’ve used in the period. Multiply this by your unit rate for clarity. Remember there’s also a standing charge per day for both gas and electricity.
• Spot extra charges. VAT and any adjustments will be listed separately.
• Compare periods. Look at previous bills to track changes in usage or cost.
• Use your app or online account. It’s the easiest way to see your energy use and manage your bills and payments. If you haven't already, why not check out the So Energy app on the App Store or Google Play.

Tips to manage and reduce electricity costs

Small changes can make a big difference to your bill. Here are some practical tips:

• Get a smart meter installedThey come at no extra cost to you, yet can help you cut your energy bills.
• Switch to energy-efficient appliances
  Look for appliances with a high energy rating – they use less power and save money over time.‍
• Consider a fixed-rate tariff
  Locking in a fixed price can protect you from market changes and give you predictable bills.‍
• Unplug devices when not in use
  Chargers, TVs and other electronics still use energy on standby. Switching them off saves power.‍
• Use LED lighting
  LEDs use up to 80% less energy than traditional bulbs and last longer.‍
• Monitor your energy use
  Use your smart meter to track energy habits and spot areas to cut back.‍
• Run appliances efficiently
  Wash clothes at 30°C, only boil the water you need, and fill the dishwasher and washing machine before running them.

Check out some of our other blogs on saving energy to find out how you can cut your electricity bill without changing your lifestyle.

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