Average Cost of Electricity per kWh in the UK 2022 (2023)

According to official figures, the average electricity bill in the UK was around £764 per year for 2021, but it will be significantly higher in 2022.

While the energy price cap for 1 October to 31 December 2022 was originally announced to be £3,549 per year for both gas and electric (an increase of around £1,578 or 80% from the previous cap of £1,971), new PM Lizz Truss has since announced that the cap will be £1,000 lower at £2,500 per year for the typical household. NOTE: this does not mean your energy bills are capped at £2,500! The cap is not actually a cap on the total figure one pays—the cap is a cap on the per kWh cost (unit cost). So the £2,500 'cap' refers only to households with typical usage. Those using more will pay more than £2,500 per year!

What does this cap mean on a per kWh basis? The government has just announced the per kWh caps to be 34.0p/kWh for electricity and 10.3p/kWh for gas, inclusive of VAT, from 1 October.

This article will explain what we know about current unit costs for electricity in the rapidly changing market. We'll also discuss historical electricity cost data so you can see just how much prices have risen, as well as see differences by region, household consumption and depending on how you pay: credit, direct debit or prepayment.

In the current market, if you're on a default rate which is set by the government’s energy price cap then you theoretically may find better value tariffs. If you're thinking of switching read our Energy Switching Guide and sign up to our newsletter below to keep up to date on market changes. This can help you to ensure you’re paying as little as possible. But be aware that energy comparison providers across the board have paused their energy comparison so all you can do now is sign up to get an alert when deals are back (as you can do by signing up to our newsletter below).

Unit Cost of Electricity per kWh, by UK Region

According to the latest Department for Business, Energy & Industrial Strategy data, average UK electricity prices per kwh were 18.9 p/kWh for 2021, but at the end of 2022 they will be 34.0p/kWh for electricity and 10.3p/kWh for gas, inclusive of VAT.

As far as we can tell, they haven't announced the caps by region—and prices do vary from one region to the next.

Also, location matters, with electricity prices varying by region. The table below displays unit prices by area, with a rough estimate by area for 1 October according to the new £2,500 price cap (that is, reflecting a 21% increase in unit costs for electricity). Please note, these regional prices are without VAT, which is charged at 5%. If you want the price including VAT for your area, multiply by 1.05.

AreaAverage variable unit price in 2021 (p/kWh)April - September 2022NimbleFins Estimate for October 2022
East Midlands18.426.331.9
Eastern18.827.833.8
London18.928.234.2
Merseyside & North Wales20.228.234.2
Northern18.425.831.3
North Scotland19.326.632.3
North West18.426.732.4
South East19.526.532.2
South Scotland18.826.532.2
South Wales19.526.932.7
South West19.527.132.9
Southern18.827.132.9
Midlands18.626.532.2
Yorkshire18.226.131.7
United Kingdom (including VAT)18.92834

Please note that these figures are a rough estimate; please use for educational purposes only as a guide—the actual per kWh charges will differ. We'll update this page when the actual figures are announced for each region.

Although for a number of years, Yorkshire has been home to the cheapest unit electricity rates; residents paid around 4% less than the average electricity cost per kWh in 2021.

If you want to see how much your monthly or annual energy bills might be, check out our new energy cost calculator—you can adjust the usage and per unit costs to customise for you, or see how different per unit prices will affect your bills.

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Current and Historical Energy Prices in the UK

Starting in October 2022, default energy tariffs for those paying by direct direct will cost £0.52 per kWh, indicating an increase of roughly 175% compared to last year. The unit cost for electricity in the price cap ending 31 March 2022 was just £0.21 per kWh (and in terms of what people actually paid, which will be less than the cap, customers with typical usage paying by direct debit paid on average £0.185 per kWh in 2021).

Average price cap unit rates for typical usage (direct debit)1 October 2021 - 31 March 20221 April - 30 September 20221 October 2022
Electricity£0.21 per kWh£0.28 per kWh£0.34 per kWh
Gas£0.04 per kWh£0.07 per kWh£0.10 per kWh

While it's hard to miss the energy price explosion in the past few months, in fact, energy prices have been rising for the past few years. For example, average unit costs had already risen a remarkable 67% from 2017 to 2021. This historical average unit cost data is based on total bills as produced by the Department for Business, Energy & Industrial Strategy. We've used these figures which are based on fixed consumption rates to look at how unit electricity prices have changed over time, but since they are based on a fixed consumption rate you'll notice they differ from the figures shown in the region-by-region analysis.

Average Cost of Electricity per kWh in the UK 2022 (1)

YearUnit cost (pence per kWh)
201012.7
201113.7
201214.5
201315.2
201415.6
201515.4
201615.4
201716.5
201817.8
201919.4
202019.6
202121.2
2022^27.75
Early 2023^34+

*Note: the Department for Business, Energy & Industrial Strategy changed their calculation of bills from being based on fixed consumption levels of 3,800 kWh per year for standard electricity to 3,600 kWh per year. The data from 2010 to 2016 reflects 3,800 kWh per year consumption and the data from 2017 onwards reflects 3,600 kWh per year consumption.

^The figure shown for 2022 is the weighted average price cap unit rate for a customer with typical usage paying by direct debit, using the three different price caps we've had in 2022 (Q1, Q2-Q3, and Q4). The actual figures for 2022 and early 2023 will differ and can only be known after the time has passed.

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NEW POLL: How are recent energy price rises affecting you?

Please tell us how you're being affected by rising energy prices. Are you turning down the thermostat? Are you more careful of other household budget items like food? Or are you able to absorb the increased rates without having to make sacrifices to other areas of your budget or your comfort? We would like to know.

More Recent Energy Price Rises

The data above is historical, but in the current environment most of us want to know what's happening with energy prices now—and where they'll be in the future. A good tool for that is checking futures prices. Futures prices tell you where the market is pricing something in the future. (Read more about futures contracts at the end of the article, if you're interested.)

Let's consider the futures prices for UK natural gas. (Why natural gas? Electricity generation in the UK comes from many sources, such as natural gas, coal and renewables. Natural gas is the largest contributor to UK electricity generation, so rising natural gas prices have a big impact on electricity prices.)

We could look at the November 2022 natural gas futures in the UK to get an idea of what prices are expected to be in November 2022. Or we could check April 2023 natural gas futures to see if prices for the springtime are expected to be as bad.

The chart below shows futures prices as of August 2022 in green and what the futures prices were back in May 2022 in orange. As you can see, the futures prices indicate that expectations for natural gas prices have increased dramatically from just a few months ago. While they are expected to generally trend down from November when they are expected to peak, it looks as though it will take many years to return to previous prices. This will certainly not help people struggling to pay their bills today.

Average Cost of Electricity per kWh in the UK 2022 (2)

Another reason that energy prices feel very high right now is that we'd gotten used to lower electricity bills during the pandemic. With demand lower, prices dropped. Now, the rising prices feel even more shocking coming off of such low rates.

Why are energy prices so high right now?

Energy prices are high around the globe. It's not just the UK suffering from higher energy prices. There are a number of factors at play in addition to the Russian invasion of Ukraine. Here's a quick overview:

  • Increased demand. The economic recovery post pandemic has resulted in increased demand for energy, which in turn leads to higher prices.
  • Weather affecting renewable energy sources. Summer of 2021 was less windy in Europe; simultaneously there have been droughts in Brazil—both of which led to less renewable energy storage (turbine and hydropwer, respectively).
  • Weather affecting energy consumption. A hotter summer in Asia and a colder winter in Europe has led to increased energy consumption around the world (e.g. air conditioning in Asia, heating in Europe).
  • Gasprom. The Russian gas giant did not replenish European storage sites as much as normal.
  • Operational issues. Not all regular maintenance was able to be performed during the pandemic, which led to systems being down, supply issues, project delays, etc.

However, rates vary according to how you pay. While Northern Ireland tops the charts for highest prices for direct debit options, those living in Merseyside & the South West paid the highest prices for electricity bills that work on credit (i.e. you pay when you receive your bill, typically every three months) and prepayment.

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Compare Energy Prices

What do these prices mean in terms of annual energy bills? In the following chart, we compare the cost per year of the cheapest and average standard variable energy prices for large legacy suppliers and other suppliers to give you an idea of what households pay in total for their fuel—these prices reflect dual fuel rates for both gas and electric.

Note: the current energy cap (i.e. the maximum a utility company can charge an average customer each year for their electric and gas) of £1,277 was set on 6 August 2021 and is set to rise again on 1 April. According to Ofgem this cap will rise 54%, bringing the new cap to £1,971 per year for those paying by direct debit.

Average Cost of Electricity per kWh in the UK 2022 (3)

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These bills reflect usage of 12,000kWh/year for gas and 2,900kWh/year for electricity. A standard variable tariff is an energy supplier's basic offer, and it does not have a fixed end date. The baskets reflect a simple average of the 10 cheapest tariffs available when comparing the market.

Standing (Fixed) Charges for Electricity in the UK

Residents of North Scotland pay the highest standing charges in the UK: £99.28 per year, which is 17.3% more than the UK average. A standing charge is like the line charge on your telephone—it's a fixed cost you'll pay regardless of how much energy you use.

The 2nd highest standing charges are in Yorkshire (£92.36) and the North East (£90.00).

Northern Ireland is the only area in the UK where you don't pay a standing charge on standard electricity contracts (however, time-of-use contracts like Economy 7 may have a standing charge in NI).

AreaAverage fixed cost (£/year)
Northern Ireland£5.5
Merseyside & North Wales£81.6
East Midlands£82.9
North West£83.1
Southern£85.3
South East£85.6
South Scotland£86.7
Eastern£87.1
South Wales£87.2
London£88.0
West Midlands£88.5
South West£89.8
North East£90.0
Yorkshire£92.4
North Scotland£99.3
United Kingdom£84.7

Here's How Your Electricity Costs Change with Payment Type

How you pay for electricity (i.e., credit, direct debit or prepayment) will affect both your variable unit charges and your standing charges.

What's the cheapest way to pay for electricity?

Paying with a regular direct debit has historically been the cheapest way to buy electricity in the UK for quite a while; that is, direct debit contracts have the lowest variable unit prices on average.

Interestingly, prepayment meters used to have the highest standing (fixed) charges, costing households an additional £20 per year vs. paying via direct debit back in 2017. However, the highest charges for electricity (both variable and fixed) are now paid by those using credit (paying by "credit" is when you get a bill from your supplier which you then pay with a cheque, cash, credit card, etc.). In fact, average variable charges cost 9% more and fixed charges cost 22% more when paying by credit than paying by direct debit.

Please keep in mind that these are historical figure for 2021 shown to illustrate the differences in payment method. They do not reflect current electricity prices.

Payment typeCreditDirect debitPrepayment
AreaAvg unit price (p/kWh)Avg fixed cost (£/year)Avg unit price (p/kWh)Avg fixed cost (£/year)Avg unit price (p/kWh)Avg fixed cost (£/year)
East Midlands19.6£98.418.0£81.219.0£73.4
Eastern20.1£101.918.4£84.719.4£80.3
London20.0£99.018.4£82.519.0£89.4
Merseyside & North Wales21.7£97.019.7£80.820.9£73.2
North East19.5£107.917.9£92.419.3£63.6
North Scotland20.7£113.818.9£95.219.6£100.3
North West19.5£99.218.0£82.719.0£69.0
Northern Ireland19.7£0.019.4£10.719.7£0.0
South East20.8£101.619.1£84.020.1£73.7
South Scotland20.1£101.018.3£86.919.4£74.3
South Wales20.8£104.919.0£84.519.9£81.2
South West20.9£106.019.2£87.320.1£85.1
Southern20.3£101.518.4£82.619.3£80.8
West Midlands19.8£103.618.2£86.519.2£80.9
Yorkshire19.2£109.517.7£92.219.0£74.8
United Kingdom20.1£99.218.5£83.719.5£72.8

If you're in a position to pay via direct debit, that has traditionally been the cheapest option. If you're looking to save money on your electricity bills, avoid paying via credit as this is now the most expensive payment method in terms of both variable and fixed costs. Those wanting to save can switch tariff or supplier. To learn more, see our guide on Energy Switching.

Are Standard or Economy 7 Electricity Rates Cheaper?

Economy 7 tariffs have cheaper night rates by 41.3% vs. a normal, single rate Standard tariff, but the Economy 7 standing charges are 5.2% higher and the day rates are 16.7% higher. Please note that these are historical prices for 2021 and current prices will be higher.

Standard vs. Economy 7 TariffsAvg unit DAY price (p/kWh)Avg unit NIGHT price (p/kWh)Avg fixed cost (£/year)
Standard18.918.9£84.66
Economy 722.011.1£89.06
(Video) The Price of Electricity, August 2022

Can you actually save money with an Economy 7 tariff? Using the figures above, if you could manage so that half of your electricity usage occurred during the 7 off-peak hours, you'd pay an average on 16.6 p/kWh for electricity on an Economy 7 tariff, which is in fact 12.3% cheaper than the Standard rate of 18.9 p/kWh. But keep in mind that while you might be able to run your dishwasher and dryer during the "night" hours which vary but typically run from 11pm to 6 am, your fridge runs all day and you're most likely to use lights, your oven, your kettle and other high-energy appliances during the "day" hours.

  • Standing charges are 5.2% more expensive on Economy 7 tariffs than Standard tariffs
  • Day unit charges are 16.7% more expensive on Economy 7 tariffs than Standard tariffs
  • Night unit charges are 41.3% cheaper on Economy 7 tariffs than Standard tariffs

In a recent test Ofgem found that households saved £263 on average per year by switching.

How do futures contracts work?

Futures contracts can be confusing, so here's a quick overview. A futures contract is an agreement to buy or sell something (e.g. a commodity or stock) at a predetermined price at a specified time in the future. A futures contract will be for a certain month and year (e.g. March 2022) and the price of that contract indicates what the market thinks the underlying will be trading at in that future month. For example, there'll be a contract for March 2022, one for April, 2022, one for May 2022, and so on. The market trades each of these up until the last trading day of the month before, when the contract expires. So, for example, the March 2022 contract will be traded until the end of February 2022.

If you pick a far-out contract, the price for that contract today tells you where the market anticipates the price will be during the month of that contract. If you pick a nearby contract, the futures price essentially gives you more of a current market price. The futures price converges towards the current price, the closer you get to the contract month—this is because there's less guess work involved the closer you get.

And we can use historical futures prices to see what energy prices have been doing up until the current date. For example, we can look back to July 2021 futures prices to see what natural gas was essentially trading at in July 2021. (Futures prices essentially become current prices once you pass the expiration date of the contract.) This is useful for seeing, for instance, how much prices popped up in November/December 2021 compared to prices over the past couple of years.

Note: The ICE UK natural gas futures contracts used in this article reflect the GBP contract price for 1,000 therms of natural gas per day (1 therm = 29.3071 kilowatt hours) per delivery period (e.g. month).

BBC Kent Radio Interview

If you want more information, listen to Erin talk to Glen Thompsett on BBC Kent on 26 August 2022. They discussed the energy price cap hike and the benefit of using gas vs. electricity where possible to save money. You can also see the experiment we did looking at whether it's cheaper to boil water for a cup of tea with a gas hob or electric kettle. Audio courtesy of BBC Kent.

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FAQs

How much does a kWh cost in UK 2022? ›

According to the Energy Saving Trust, the national average price (as of October 2022) per pence/kWh of electricity is £0.34.

What is a good electricity rate UK 2022? ›

Unit Cost of Electricity per kWh in the UK

Average UK electricity prices per kWh averaged around 18.9 p/kWh in 2021, but will be closer to 51 p/kWh by the end of 2022; this is according to the latest data from the Department for Business, Energy, and Industrial Strategy and based on projections by Cornwall Insight.

What is the energy price cap per kWh 2022? ›

What's the maximum charge for a single unit of electricity or gas from 1 October 2022? So, from 1 October 2022, if you're on a standard variable tariff paying by direct debit, the average unit price will be frozen at 34.0p/kWh for electricity and 10.3p/kWh for gas (including VAT).

What is the current electricity price per kWh? ›

The average per kWh price for electricity has increased from 17.2p (Oct 2020-Mar 2021) to 19.0p (Apr-Sep 2021) to 20.8p (Oct 2021-Mar 2020) to 28.3p currently and will rise to 51.9p in October.

Should I fix my energy prices until 2023 UK? ›

You should only fix your energy prices until 2023 if you can source a cheaper fixed tariff than that of the October 2022 price cap increase.

How many kw per hour does an average house use UK? ›

The average UK household will use between 8.5kWh and 10 kWh of energy. This is only a guideline figure as there are many influencing factors that affect this figure.

Should I go for a fixed rate energy tariff 2022? ›

You will benefit from set rates that will protect you from energy price hikes and make it easier to take control of your utility bills. However, fixed tariffs can be more expensive and often come with large exit fees and other contractual conditions.

How much should my electric bill be UK? ›

What's the average electricity bill per month? The average electricity bill per year for 2021 (Opens in a new window) was £764, based on annual consumption of 3,600 kWh/year. That's £64 per month, an increase of 7.5% on 2020. In total that brings the combined average gas and electricity bill to £1339 per year.

What is the average electricity bill for a 1 bedroom flat UK 2022? ›

Average bills for a one-bedroom flat

The average electricity use for a one-bedroom flat is around 1800kWh, which would come to an annual bill of around £302.58 a year – or £25 a month. If you're on a standing charge, you could also expect to pay between £75-90 a year.

What is the current UK energy price cap? ›

1. On 1 Oct the previous price cap was replaced by a roughly 27% higher 'price guarantee rate' – taking a typical bill from £1,971/yr to £2,500.

Should I fix my energy prices until 2024 UK? ›

Fixing energy until 2024 is a risk, as there are lots of guesses involved but it is a great option for those who want some certainty. Many energy suppliers are only offering 1-year fixed deals so even fixing until 2023 may be worth it.

What is the new UK energy price cap? ›

After the government intervened with the Energy Price Guarantee to prevent the cap rising to £3,549, the cap will now rise to £2,500 from 1st October for the average household on a dual fuel tariff, paying by direct debit. The Energy Price Guarantee will remain at this level for the next two years.

How do you figure price per kWh? ›

Calculating Kilowatt Hour Rate

The kilowatt-hour rate is the price of power supplied by your electric provider. To calculate your kilowatt-hour rate, divide your total power bill, minus any taxes, by your total power consumption.

How much does it cost to run an electric oven for 1 hour UK 2022? ›

On average, an electric range oven consumes 0.8kWh of energy every hour. So, it costs around 40p to run an electric oven per hour.

How much have energy prices increased 2022? ›

The latest increase will see electricity rates rise by 45.2% and gas rates by 46.3%. There will also be an 8% increase in annual standing charges for both gas and electricity. New rates will come into effect from October 1st, 2022.

Is it worth getting a fixed-rate energy tariff? ›

Are fixed-rate tariffs cheap? Fixed-rate tariffs ultimately depend on the conditions of the energy market – if wholesale prices are high, fixed deals will be less attractive. Generally speaking though, if market conditions are good and you shop around, a fixed-rate tariff will be better value than a variable-rate one.

Is it better to be on a fixed energy tariff or variable? ›

If you're on a fixed tariff

There's a limit to how much your supplier can reduce your energy rate - this means your new rate might still be higher than the standard variable tariff. You'll still pay more if you start using more gas and electricity. Your daily standing charge won't change.

Should I take a 2 year fixed energy deal? ›

The main reason to sign up for a 2-year energy deal is to get peace of mind on your energy bills. Even if the market cost of energy increases you will not end up paying a higher rate. This lets you plan your household budget well ahead of time.

How much electricity does a 4 bedroom house use per day UK? ›

Your average energy bill by house size and usage

According to Ofgem, the average British household has 2.4 people living in it and uses 2,900 kWh of electricity and 12,000 kWh of gas. This works out at 242 kWh of electricity and 1,000 kWh of gas per month.

How many kWh does a house use UK per day UK? ›

The average daily consumption in a UK household is between 8.5 and 10 kWh. Many factors can influence this average energy consumption and the amount of electricity costs, such as the appliances that are used.

How many kWh does a 5 bed house use UK daily? ›

1 or 2 bedroom house/flat - gas usage of 8,000kWh and an electricity usage of 1,800kWh. 3 or 4 bedroom house - gas usage of 12,000kWh and an electricity usage of 2,900kWh. 5+ bedroom house - gas usage of 17,000kWh and an electricity usage of 4,300kWh.

What happens if I use less energy than my fixed rate? ›

This doesn't mean that you will pay the same for your energy bill each month, however. It's the cost of the energy unit that is frozen. So, if you are on a fixed plan and use more or less energy in one month compared to another, your bill will still change accordingly.

What is the average electric bill per month 2022 UK? ›

The average unit price for dual fuel customers on a standard variable tariff, paying by Direct Debit from 1st October 2022, is approximately 10.3p per kWh plus a 28p daily standing charge for gas. And for electricity, it's roughly 34p per kWh plus a 46p daily standing charge.

How much electric Should I be using a day UK? ›

The following figures give an estimate of the average electricity usage and average gas usage per day in the UK: Electricity - between 8 and 10 kWh per day. Gas - between 33 and 38 kWh per day.

What is the average electric bill per month UK? ›

How much is the average gas and electric bill UK? Statistics show that in 2021, the average gas and electricity bill was £111.6 per month per household – £47.90 for gas, and £63.70 for electricity. That equates to £1,339 per year, or £334.80 every quarter.

How much electric does a 3 bed house use UK? ›

A 3 bedroom house falls under a medium residential category. It typically uses 3100 kWh per year ( Ofgem statistics). Apart from that, additional electricity standing charge per day is also payable by you with the bill.

How much electric Should a 2 bed house use? ›

How much electricity does a 2-bed house use. Typical electricity usage for a two-bedroom home sits between 2,500 and 3,000 kWh per year.

How much does it Cost to run a 1 bed flat UK? ›

The average gas bill for a 1-bed house

The average cost of gas in the UK sits at around 7p per Kwh, while the daily standing charge is around 27p. Therefore, for an average 1-bed flat, it will currently cost around £588 per year (or £49 per month) to keep it heated.

What is the Ofgem price cap in kWh? ›

The Ofgem price cap and the new Price Guarantee talk about typical households with average consumption over the course of a year. This means a 2-3 bedroom property using 12,000 kilowatt hours (kWh) of gas and 2,900 kWh of electricity per annum. You pay a price for each unit of gas and electricity used.

What is the April 2022 energy price cap? ›

The price cap per kWh is what suppliers will charge per unit of either gas or electricity to a customer paying by direct debit. As of April 1st, this will be 28p per kWh for electricity customers, and 7p per kWh for gas customers.

Is the energy price cap the maximum I will pay? ›

The price cap limits the rates a supplier can charge for their default tariffs . These include the standing charge and price for each kWh of electricity and gas (the units your bill is calculated from). It doesn't cap your total bill, which will change depending on how much energy you use.

Are energy prices likely to drop 2023? ›

WASHINGTON, Oct 26 (Reuters) - The World Bank on Wednesday said it expects energy prices to decline by 11% in 2023 after this year's 60% surge following Russia's invasion of Ukraine, although slower global growth and COVID restrictions in China could lead to a deeper fall.

What should I do if my energy tariff is coming to an end? ›

If your fixed tariff has already ended, you can still switch supplier or tariff. Contact your supplier to ask about their other tariffs or check how to switch supplier. You should complain to your supplier if they: don't remind you about the end of your contract.

Are energy prices expected to fall in 2023? ›

But will energy prices come down in 2023? According to the latest analysis by Cornwall Insight, energy bills could soar by 48%, based on current wholesale prices and based on typical average use, in April 2023. This is lower than its prediction made last month when the rise was predicted to hit 74%.

What is the energy price cap in pence per kWh? ›

The price cap is agreed at 21.1 p/kWh for electricity and 7.5 p/kWh for gas. According to Ofgem's latest data from August 2021, the wholesale cost element of a bill is just 29% of an electricity bill and 41% of a gas bill. See the attached images taken from Ofgem's website.

Will UK energy prices fall in 2022? ›

Household energy bills increased by 54% in April 2022 and were due to increase by a further 80% in October. The new Energy Price Guarantee will limit the October increase to 27%.

Why is electricity so expensive UK? ›

Energy bills are rising as a result of rocketing gas prices, which have increased 11-fold since 2019. The UK is particularly exposed to high gas prices, because 85% of households use gas boilers to heat their homes and around 40% of electricity is generated in gas-fired power stations.

Will UK energy prices rise in 2022? ›

It's unlikely that prices on standard variable tariffs will rise again in 2022 as the price cap has been frozen at the £2,500 rate for six months by the government.

What is the energy price cap per kWh April 2022? ›

The price cap per kWh is what suppliers will charge per unit of either gas or electricity to a customer paying by direct debit. As of April 1st, this will be 28p per kWh for electricity customers, and 7p per kWh for gas customers.

Should I fix my energy prices April 2022? ›

The recent energy price cap increase has left many homeowners questioning whether they should fix their energy tariffs. With a further increase coming into effect from April 2022, now may be the ideal time to fix your energy rates.

What is the new price cap per kWh? ›

What is the price cap per kWh? The price per unit has been frozen at 34.0p/kWh for electricity and 10.3p/kWh for gas.

Should I fix my energy prices for 1 or 2 years? ›

We recommend that customers fix their energy prices until 2023 to avoid unexpected price rises but the price cap does not affect fixed price deals. Many energy suppliers are providing fixed price deals that are more expensive than the current price cap to minimise the shortfall from variable tariffs.

What costs more gas or electric 2022 UK? ›

The unit cost of gas heating is cheaper than electric, at 10p/kWh, vs 34p/kWh for electricity. However, the average cost to install a gas central heating system is around £5,250, compared with £3,790 to install an electric heating system.

Is electricity cheaper than gas 2022 UK? ›

No. When it comes to using energy, gas is typically cheaper than electricity. Looking Ofgem's price cap rates, gas has gone up to 10.3p per kWh from October 1, 2022 from 7p and electricity up to 34p per kWh, from 28p.

Are energy prices likely to go down in 2023? ›

WASHINGTON, Oct 26 (Reuters) - The World Bank on Wednesday said it expects energy prices to decline by 11% in 2023 after this year's 60% surge following Russia's invasion of Ukraine, although slower global growth and COVID restrictions in China could lead to a deeper fall.

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