UK Electricity Prices Per kWh 2021

UK electricity prices vary in different regions. Cheap fixed tariffs offer great savings in terms of Kilowatt per hour of electrical usage. There are many energy suppliers who offer great discount prices in their fixed plans.

Calculating average monthly or annual electrical consumption is not as simple as it seems. Ofgem 2021 reports give an average household usage of around 3,100 kWh consumption per year while the UK government considers 3,800 kWh as their average standard for domestic consumption.

What Is The Average Electric Bill per kWh in My Region?

Planning or re-locating or want to know the exact numbers for your average electric bill per kWh?

It is best to do some research and compare per kWh electricity prices to know whether you are under or over the average electricity cost threshold.

UK government yearly data shows that few UK region suppliers are constantly providing cheap electricity on fixed tariffs. People pay 3% to 5% less than the average annual electricity cost per kWh. East Midland and Yorkshire have been receiving the cheapest domestic electricity consistently.  

What is the average electricity standing charge In Every Region?

If you are on a fixed tariff, every electricity supplier charges an annual electricity standing charge. Thus charge makes sure that you stay connected to the network whether consuming electricity or not.

Also, this standing charge includes fixed costs for maintaining and upgrading infrastructure for uninterrupted power supply.

As an example, if you are living in London and the supplier offers you a standing charge of 24.36p per day. Then the total fixed annual standing charge would be just to multiply 24.36p to the total number of days (365 days) in a year.  

Our research indicates that North Scotland and the Northeast have had some of the highest standing charges for many years. Yorkshire’s standing charges increased dramatically in one year. The average UK standing charge appears to be 23.03p. 

Ofgem strictly asks energy providers to specify standing charges on their consumer bills. This helps a common user to analyze, compare and choose the best tariff in the market.

Estimated Yearly Total Electrical Cost Including Yearly Standing charge

Now, to calculate the total yearly electric bill per kWh. Add the total values from Table (A) and Table (B) to get the best averages.

However, few domestic consumers often break the Ofgem and UK.GOV per kWh averages. So if you consume 5,000 kWh annually and your unit (pence per kWh) price is let’s say 15.00p/kWh. And your daily standing charge is 20.58p per kWh. Therefore, your average total yearly cost will be £825.11 by multiplying unit cost with kWh consumption and then adding the total fixed yearly standing charge from Table (B) with it.

Table (C) 

Note: The total region-wise costs from Table (C) are inclusive of 5% VAT.

What Exactly Is a kWh and How to track it?

If you take a look at your electricity bill, you know you are being billed for kilowatt-hours. But what does that mean exactly?

A watt is a measurement unit for electrical power when you turn on electrical appliances. You can see power requirements in watts in all the appliances.

Kilo means 1000 so a kilowatt 1000 watts. The energy company charges you for the accumulated amount of power being used over some period of time. The same energy is expressed as kilowatt per hour i.e. 1000 watts used over one hour.

If you used 10 100watts bulbs over an hour at full capacity, you would use 1 kilowatt-hour of electrical energy. If you turn one 100watt bulb 10 hours daily, that bulb will consume 1 kilowatt daily which means you would consume 365 kilowatts per year only from that single bulb. If your unit rate is 14.40p per KWh, then your annual electricity consumption cost for a 100watt bulb switched on for 10 hours daily will be £52.56.

It is the best practice to switch your bulbs to LEDs and practice the best electrical energy-saving practices to ensure below-average electricity bills.

Understanding Your Electric Bill

Let’s understand your electricity bill to further finalize the best average total cost per kWh.

Wholesale cost (33.87%), Network cost (22.26%), Social obligation cost (22.92%), Other direct costs (1.48%), operating cost (16.77%) and provider’s pre-tax margins (-2.07%) does not show in your electricity bill.

These operational costs are included in your supplier’s unit per kWh offer. The VAT (4.76%) is displayed in your domestic bill along with your reference number, payment slip, mode of payment options and due dates.

Sometimes, your electrical supplier offers cheap standing charges per kWh. But their unit price is high. Thus, it affects the overall annual electricity bill.

So, it is always best practice to compare units per kWh prices instead of standing charge to choose a cheap fixed tariff. Ofgem reports confirm that domestic users save hundreds of pounds by just switching their electrical energy provider every year.

Author: Jonathan Jones

Jonathan is the founder of Energy Switching UK. With over half a decade of experience in the price comparison space, Jonathan is now using his expertise and experience to help consumers switch and save money on their energy bills.