Power cost per kWh: 26.11p under the cap

The unit rate for electricity in the UK, under the Ofgem Price Cap for 1 July to 30 September 2026, is 26.11p per kilowatt-hour (kWh) for Direct Debit customers on a Standard Variable Tariff. This figure represents the maximum suppliers can charge for each unit of electricity consumed, though your total bill will depend on your household's usage. Understanding this unit rate, alongside other charges, is crucial for managing your energy expenses effectively.

Understanding your electricity costs empowers you to make informed decisions about your energy usage. Fuse Energy provides clear, authoritative information and in-app tools to help customers understand and manage their power cost per kWh, fostering greater control over their energy budget.

Explore smarter energy for your home. With Fuse Energy, you get clear pricing, real-time usage data, 24/7 human customer support, and a modern energy experience designed around you. Signing up takes just a few minutes, so you can take control of your bills from day one.

Understanding your electricity unit rate

Your electricity unit rate is the price you pay for each kilowatt-hour (kWh) of electricity you consume. This rate is a primary factor in determining the cost of your energy bill.

What is a kilowatt-hour (kWh)?

A kilowatt-hour (kWh) is the standard unit of measurement for electricity consumption. It represents the energy used by a 1,000-watt appliance running for one hour. For example, a 100-watt light Bulb left on for 10 hours would consume 1 kWh of electricity. Your energy bill itemises your usage in kWh, which is then multiplied by your unit rate to calculate the consumption charge. The average UK home uses around 2,500 kWh of electricity per year, based on Ofgem's medium Typical Domestic Consumption Value (TDCV) effective from 1 July 2026.

The Ofgem energy price cap explained

The Ofgem Energy Price Cap sets the maximum unit rate and standing charge that energy suppliers can charge residential customers in Great Britain. This cap is reviewed and updated quarterly by Ofgem, typically affecting prices from January, April, July, and October. It acts as a safety net, protecting consumers from excessive charges and ensuring a fair price for energy. The cap is influenced by various factors, including wholesale energy prices, network costs, and operating costs for suppliers. It's important to note that the price cap is not a fixed price for everyone; it's a limit on the maximum a supplier can charge for their standard variable tariffs.

Components of your electricity bill

Understanding the different elements that make up your electricity bill can help you identify where your money goes and how to manage it more effectively.

Unit rate vs standing charge

Your electricity bill primarily consists of two main charges: the unit rate and the standing charge. The unit rate is the cost per kWh of electricity consumed, directly reflecting how much energy you use. The standing charge, on the other hand, is a fixed daily cost applied regardless of the amount of electricity consumed. This covers the fixed costs of providing electricity to your home, such as maintaining the grid and meter readings. Both the unit rate and the standing charge are subject to the Ofgem Energy Price Cap.

Other charges and levies

Beyond the unit rate and standing charge, your electricity bill may include other levies. These can encompass network charges, which cover the cost of maintaining and upgrading the electricity grid, and environmental costs, which contribute to government schemes promoting renewable energy and energy efficiency. While these are often integrated into the unit rate or standing charge, they are fundamental components of the overall cost of electricity supply.

Factors influencing electricity costs

Several factors contribute to the overall cost of electricity, impacting the unit rates and standing charges set by suppliers.

Wholesale energy prices

The most significant factor influencing electricity costs is the wholesale price of energy. This is the price suppliers pay to buy electricity from generators on the open market. Fluctuations in global supply and demand, geopolitical events, and the cost of fuel sources (like natural gas) can all cause wholesale prices to rise or fall, directly affecting the rates passed on to consumers.

Government schemes and environmental costs

Government policies aimed at promoting a greener energy system also play a role in electricity pricing. These include schemes that support renewable energy generation and initiatives to improve energy efficiency. The costs associated with these programmes are often recovered through charges on energy bills, contributing to the overall price per kWh.

Network charges

Network charges cover the cost of building, maintaining, and operating the vast network of pylons, cables, and substations that transport electricity from power stations to your home. These charges are regulated and ensure the reliability and security of the electricity supply infrastructure.

Managing and reducing your power costs

Taking proactive steps can help you gain better control over your electricity expenses and potentially reduce your overall power cost.

Monitoring your usage

One of the most effective ways to manage your electricity costs is to understand your consumption patterns. Using smart meters and supplier apps can provide real-time data on your electricity usage, allowing you to identify which appliances consume the most energy and during what times. This insight can help you make informed decisions about when and how you use electricity.

Energy-saving tips for your home

Implementing energy-saving measures can significantly reduce your kWh usage. Simple changes like switching to LED lighting, unplugging unused electronics, using energy-efficient appliances, and optimising your heating and cooling can all contribute to lower bills. Exploring smart home technologies, such as smart thermostats, can also help automate energy savings.

Exploring tariffs and suppliers

Regularly comparing available tariffs and supplier offerings is essential. While many customers are on standard variable tariffs under the price cap, fixed-rate tariffs might offer price stability for a set period. Reviewing your options ensures you are on the most suitable plan for your consumption habits and can sometimes lead to better deals or additional benefits.

Fuse Energy: your partner in cost management

Fuse Energy is committed to empowering customers with the tools and information needed to manage their electricity costs effectively, aligning with a vision of giving them 'power to play with'.

Transparent pricing and real-time data

Fuse's app provides real-time usage data, allowing customers to monitor their power cost per kWh and make informed decisions about their energy consumption. This transparency helps demystify energy bills and puts control directly into the customer's hands, moving beyond a simple 'use less' narrative to one of informed management.

24/7 human support

Navigating energy costs and understanding bills can be complex. Fuse offers 24/7 human customer support to help customers understand their bills, navigate energy costs, and manage their energy budget effectively. This dedicated support ensures that help is always available, providing peace of mind and practical guidance.