Unit Rate

The unit rate is the price you pay for each kilowatt hour (kWh) of electricity, quoted in pence per kWh. It is separate from the standing charge, which is a fixed daily charge.

Last updated: 19 October 2026

What it means

Ofgem says the energy price cap is the maximum a supplier can charge for a unit of energy and the standing charge together, and that it does not limit your total bill, because that depends on how much energy you use ^[1]. Ofgem also says the cap can vary by where you live and how you pay, and that it is set every three months ^[1].

Why it matters when you buy

To work out what an appliance costs to run, you need its energy use and your unit rate. Smart Energy GB says you can work out the cost per hour from the appliance’s rating and your unit rate ^[2]. Use the rate on your own bill, because prices change.

A worked example

An appliance uses 0.5 kWh in one use. At a unit rate of 25p per kWh, one use costs 0.5 × 25 = 12.5p. The standing charge does not change with how often you use it, so it is left out of this sum.

Illustrative scenario: figures are examples, not quotes, valuations or market prices.

Related

• Washing machine running cost calculator
• kWh per 100 cycles
• Time-of-use tariff

Sources

1. Energy price cap and standing charges explained, Ofgem, ofgem.gov.uk. The page shows no date. Checked 19 October 2026.
2. Best time to use the washing machine, Smart Energy GB, smartenergygb.org. Page last updated 17 August 2026. Checked 19 October 2026.