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A simple explanation of unit rates on your energy bill, how they're calculated, and what they mean for your costs.
A unit rate is the price you pay for each unit of energy you use. For electricity, it's measured in pence per kilowatt-hour (kWh), and for gas, it's also measured in pence per kWh.
This is different from your standing charge, which is a fixed daily fee. The unit rate is what you pay for the actual energy you consume.
Your energy bill will show:
For example, if you used 500 kWh of electricity at 30p per kWh, you'd pay £150 for that energy (500 × 0.30).
Unit rates vary by:
As of 2024, typical unit rates in the UK are:
These rates can change, especially on variable tariffs, so it's worth checking your bill regularly.
Your energy bill has two main parts:
So if your standing charge is 50p per day and you use 10 kWh at 30p per kWh:
Unit rates can be higher or lower depending on:
You can't change the unit rate itself (unless you switch tariffs), but you can reduce your total costs by:
Energy & Utilities Writer
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