Electricity and gas use different rates
Regional variation
How to compare two tariffs
Watch for changing consumption
What is a kWh?
A kilowatt hour (kWh) is a unit of energy. Suppliers use it to measure how much electricity or gas you consume. If an electricity tariff charges 25p per kWh and you use 10 kWh, the usage portion would be £2.50 before adding the standing charge and any other relevant adjustments.
Electricity and gas use different rates
Gas and electricity usually have different pence-per-kWh prices, so do not compare them directly as though they were the same product. Gas heating can account for a large share of annual household consumption, while electricity may cost more per kWh. A dual-fuel household should calculate the two fuels separately and then combine the totals.
Regional variation
Ofgem explains that actual capped rates can vary by region, payment method, fuel type and meter type. This is why a national average is useful for context but not a substitute for the rate shown on a personalised quote for your postcode.
How to compare two tariffs
Multiply each tariff’s unit rate by your annual kWh consumption. Then calculate the standing charge for 365 days and add it. Repeat for gas if applicable. This gives a simple annualised tariff comparison before one-off credits or discounts. If the tariff has different day and night rates, use your split consumption instead of a single rate.
Watch for changing consumption
Even on a fixed-rate tariff, the total bill is not fixed. A colder winter, electric vehicle, heat pump, new household member or working from home can change consumption. The unit rate tells you the cost per unit, but your final bill remains linked to how much energy you use.
Do not ignore tariff structure
Some tariffs have day/night rates, time-of-use periods or electric-vehicle windows. In those cases a single average unit rate can be misleading. Estimate how much of your consumption falls into each rate period and calculate each block separately.
A simple sensitivity check
If your electricity rate changes by 1p/kWh and you use 2,700 kWh a year, the usage portion changes by about £27 a year. If gas changes by 1p/kWh at 11,500 kWh annual use, that is about £115 a year. This is why small-looking pence-per-kWh differences can matter over twelve months.
Supplier tariffs, price-cap rates and referral campaigns can change. Check live official information before making a switching decision.
