Electricity and Gas Unit Rates by Region

Energy bills in Great Britain are not priced nationally. The price cap sets a separate maximum for each of the fourteen energy supply regions, so the pence per kWh you pay and the daily standing charge both depend on where you live. In the July to September 2026 cap, electricity unit rates ranged from 25.10p per kWh in the East Midlands to 27.66p per kWh in North Wales and Mersey, while electricity standing charges ran from 44.78p a day in London to 70.76p a day in North Wales and Mersey¹. Gas varies less, but it still varies: 7.19p per kWh in the East Midlands against 7.53p per kWh in the Southern region in the same quarter¹.

The reason is not supplier pricing. It is the cost of the wires and pipes that reach your home. Distributing electricity across sparsely populated regions costs more per customer than in dense cities, and the cap allows suppliers in those regions to charge more to recover those network costs². This page sets out what each region pays, why the gaps exist, and what they mean for a household trying to cut its dependence on the bill.

Every regional bill has two parts: the unit rate and the standing charge

Whatever region you live in, your bill is built the same way. The unit rate is how much you pay for each unit of gas or electricity you use, and the standing charge is a fixed daily fee. When comparing tariffs, these two figures, together with whether prices are fixed or can change, the length of any fixed term, the payment methods available and any additional benefits, are what determine the total cost⁵.

The cap restricts both parts. It sets maximum prices for a unit of energy and for daily standing charges for customers in each energy supply region of Great Britain, and a separate cap applies in each of the fourteen regions, covering the whole region with no breakdown below regional level². So two households on identical standard variable tariffs, using identical amounts of energy, can face noticeably different bills purely because of their postcode.

The standing charge is the part that cannot be avoided by using less. Ofgem is explicit that it is paid every day even if no energy is used that day⁶, and the House of Commons Library describes it the same way: a daily charge that energy customers have to pay even if they use no energy⁷. A household that goes away for a month with everything switched off still accrues a month of standing charges on both fuels.

Standing charges: 44.78p a day in London, 70.76p in North Wales and Mersey

The standing charge is where regional differences bite hardest. For the July to September 2026 cap, the electricity standing charge ranged from 44.78p per day in London, the cheapest region, to 70.76p per day in North Wales and Mersey, the most expensive¹. The UK average for a single-rate meter that quarter was 57.19p per day, which works out at £208.74 over a year³.

Other regions sit between those poles. In the same quarter the Northern region paid 64.29p a day for electricity, the North West 47.61p, South Wales 57.84p, the Southern region 49.70p and the Midlands 25.33p per kWh on the unit rate side with a standing charge that varies similarly⁸. One independent guide puts the cheapest electricity standing charge in London at 44.83p per day, a figure that differs slightly from the 44.78p above; both describe the same quarter's cap, and the small gap reflects the different snapshot dates of the two guides⁹.

The charge also moves over time. Ofgem's own benchmark tables show the annual standing charge element for North Wales and Mersey at £241.73 for one payment method in one restriction period and £263.66 in another table of the same period, reflecting the different payment methods and metering arrangements the tables cover¹⁰. In the October to December 2025 cap, the nil-consumption annual figure for North Wales and Mersey, which is essentially the standing charge expressed yearly, was £272.95 for standard credit customers¹¹. Earlier still, the benchmark maximum charges for the period covering April to June 2024 put the single-rate standing element for the region at £253.22 for standard credit¹².

Regional variation explained: network upkeep, population spread and old infrastructure

The regional spread is not arbitrary. It reflects what it actually costs to run the network in each area. The factors identified in responses to Ofgem's standing charges work are differences in local infrastructure costs, varying network distribution costs driven by geography and population density, and the cost of maintaining legacy infrastructure and systems¹³.

The logic is straightforward. A region with few customers spread across difficult terrain needs more poles, cables and substations per household than a dense city, and those assets must be maintained whatever the weather. National Energy Action notes that there are regional variations, with some areas in Great Britain paying much more than others¹⁴, and End Fuel Poverty Coalition points to the same pattern: some regions, such as Merseyside and North Wales, pay substantially more than others, such as London¹⁵.

There is an argument, though, that the old justification is weakening. Energy Saving Trust's response to Ofgem notes that more renewable energy is now generated regionally and locally, which removes the argument that standing charges need to be higher in regions such as Scotland to accommodate higher distribution costs¹³. Historically the North of Scotland paid higher standing charges and unit costs on the basis that transmission and distribution costs there are higher¹³; local generation feeding into the local network changes that arithmetic, and it is one of the pressures behind wider standing charge reform.

For the household, the practical point is that this component of the bill is outside your control. You cannot shop around for a cheaper distribution network, and the cap simply passes the regional network cost through to your bill. What you can control is how much energy you draw through that network, which is why the unit rate side of the bill, and the typical consumption behind the headline figures, matter for comparison.

The reasons Northern Scotland faces higher bills: distribution costs and the AAHEDC levy

Northern Scotland is the clearest case study in regional cost differences. The region has some of the highest electricity distribution costs in Great Britain, which explains to some degree why its standing charge, 57.55p per day in the July to September 2026 cap, sits above the UK average even though its unit rate that quarter, 26.35p per kWh, was mid-range⁸.

Part of the answer for the north is a levy with a long name: Assistance for Areas with High Electricity Distribution Costs, or AAHEDC. It is a minor levy that supports electricity distribution costs in Northern Scotland, and it works by spreading part of that cost across all bill payers in Great Britain⁴. It raises £40 million annually, adding only £1.14 to the typical household's annual electricity bill⁴. In other words, every GB household pays a little over a pound a year so that households in the north of Scotland do not carry the full weight of their network alone.

The official tables show what the region's capped bills look like in practice. In the July to September 2025 cap, the maximum annual electricity charge for Northern Scotland was £1,189.05 at 4,200 kWh on one payment method table, £1,036.56 at 3,100 kWh on another, and £941.40 at 3,100 kWh on a third, the three tables corresponding to different payment methods¹⁶. Benchmark maximum charges for the charge restriction period show the region at £1,234.55 per annum at 4,200 kWh on multi-register metering in one table and £1,142.19 in another¹⁷.

At the national level the differences are smaller than the regional ones. Uswitch's energy statistics put the average bill in Scotland just 0.47 per cent higher than in England and Wales, and 0.85 per cent higher than in Northern Ireland, a negligible gap once the whole nation is averaged¹⁸. The sharp edges are regional, not national: it is North Wales and Mersey and Northern Scotland that stand out, not Scotland as a whole.

Gas prices across the regions: from 7.19p per kWh in the East Midlands

Gas varies less than electricity, because the gas network's costs are more evenly spread, but the cap still sets regional rates. In the July to September 2026 cap, the East Midlands had the cheapest gas unit rate at 7.19p per kWh, and the Southern region the most expensive at 7.53p per kWh¹. Customers in the East Midlands pay the least on average, with a unit rate of 7.19p⁸.

Other regions that quarter sat between: the South East at 7.39p per kWh and the Midlands at 7.27p per kWh⁸. In the following quarter, October to December 2026, the East Midlands electricity unit rate was 25.36p per kWh, a figure that differs from the 25.10p recorded for the previous quarter, and gas rates had moved too: the West Midlands at 7.90p per kWh, Eastern England at 7.91p and North Eastern England at 7.92p⁸. The lesson is that the regional ranking is a moving picture, reset every quarter.

The historical record shows the same structure at crisis-era prices. Under the Energy Price Guarantee's regional rates for April to June 2023, gas unit rates in the East Midlands were 10.33p per kWh excluding VAT for standard credit customers, 9.93p for prepayment and 9.70p for other payment methods, with the Midlands region at 10.38p, 9.95p and 9.75p respectively¹⁹. Those rates were the maximum unit rates suppliers could charge for tariffs subject to the Ofgem price cap¹⁹.

Ofgem's benchmark tables for July to September 2026 show the annual gas picture at 9,500 kWh: a maximum annual charge of £750.33 in the East Midlands against £781.21 in London, with standing charge elements of £100.04 and £102.62 respectively, all exclusive of VAT, which suppliers apply to consumer bills²⁰.

The effect of how you pay on your unit rate

Region is only one axis of variation. The cap sets separate maxima for direct debit, prepayment and standard credit customers, and the difference is material. Ofgem's announcement of changes between 1 January and 31 March 2026 gives the example of a standard variable tariff customer paying for electricity by direct debit at 27.69 pence per kilowatt hour on average across England, Scotland and Wales, including VAT at 5 per cent²¹.

Prepayment customers have had the better of the comparison recently. Since February 2024, those prepaying for their electricity and gas have paid slightly less for each unit of energy they consume compared to those using standard credit meters²². That is a deliberate policy position, recognising that prepayment households are disproportionately on low incomes; the detail is covered on prepayment meters and in the comparison of prepayment versus direct debit.

Standard credit, paying on receipt of a bill, is consistently the most expensive way to pay, and the differences between all three methods are set out in the cap rates by payment method. The regional tables make the interaction explicit: Ofgem publishes separate benchmark maximum charge tables for each payment method, which is why the same region appears several times with different figures¹⁶.

Payment habits also vary regionally, which affects what households actually experience. Parliamentary data on payment methods for standard electricity shows 54 per cent of UK customers paying by direct debit²³. The Energy Price Guarantee regional rates show the same structure historically: in the East Midlands, electricity was 33.38p per kWh excluding VAT for standard credit, 29.77p for prepayment and 30.86p for other payment methods in April to June 2023¹⁹.

The regional figures that underpin the price cap

When Ofgem publishes the cap, it does so as a set of regional tables called benchmark maximum charges. Each table shows, for one region and one payment method, the maximum standing charge and the maximum annual bill at a benchmark level of consumption. For the charge restriction period 12b, covering April to June 2024, the East Midlands single-rate maximum was £887.39 at 3,100 kWh for standard credit and £811.19 for prepayment, with multi-register maxima of £1,072.11 and £985.17 respectively at 4,200 kWh¹². North Wales and Mersey in the same period had a single-rate standard credit maximum of £974.98 at 3,100 kWh¹².

The default tariff cap tables for April to June 2024 show the same regional spread across England: £944.54 at 3,100 kWh in the South East, £919.15 in the Eastern region, £906.15 in the North West, £896.52 in the East Midlands, and multi-register figures of £1,154.60 in the Southern region and £1,134.83 in the Northern region at 4,200 kWh²⁴.

The benchmark consumption levels themselves have changed. From 1 January 2026, the benchmark for single-rate electricity is 2,700 kWh per year, following Ofgem's price cap benchmark review decision²⁵. The July to September 2026 tables use 2,500 kWh for single-rate and 3,400 kWh for multi-register electricity, and 9,500 kWh for gas²⁰. So the annual figures in the tables are not forecasts of your bill; they are the capped maximum for a household at that exact usage, and the typical household figure is a separate construct again.

Electricity benchmark maximum charges, one payment method table, 1 July to 30 September 2026²⁰.

The same region appears with different figures in the other payment method tables: North Wales and Mersey shows £971.97 at 2,500 kWh in the second electricity table and £884.59 in the third²⁰. Earlier restriction periods show the same structure at different levels, with the region's single-rate standing element at £241.73 and £263.66 across two tables in period 14a¹⁰.

Zero standing charge deals and their trade offs

Because the standing charge is paid regardless of usage, some households look for tariffs without one. These exist, but the trade is not free. No standing charge tariffs typically charge higher unit rates for gas and electricity, which could result in higher energy bills²². Confused.com makes the same point: with a no standing charge tariff you pay for the energy you use but do not pay standing charges, and the kWh rates charged are often higher per unit of energy used²⁶.

The structure can be more extreme than a simple higher unit rate. National Energy Action describes how these tariffs charge a much higher unit rate for the first two units of gas and electricity you use each day, then a lower, more normal rate for all other usage after this¹⁴. That daily front-loading means a household using very little energy can come out ahead, while a normal-usage household pays more than on a standard tariff.

For a household pursuing energy independence, the arithmetic matters. If you have cut your consumption hard, through insulation, solar or simply using less, the standing charge becomes a larger share of your bill, and a no standing charge tariff shifts the cost back onto what you use. If your usage is already minimal, that can work in your favour; if it is average or above, it usually does not. The comparison is set out in detail on no standing charge tariffs.

The House of Commons Library's framing is a reminder of why this debate matters: standing charges are a daily charge that energy customers have to pay even if they use no energy⁷, and Ofgem's own consumer guidance says the same⁶. A charge that accrues on an empty, unoccupied home is a charge that behaves like a tax on connection, which is precisely why reform is on the agenda.

VAT on household electricity: the temporary cut and its planned end

One further change affects every region at once. VAT on household electricity bills is being temporarily reduced from 5 per cent to 0 per cent, applying to all tariffs including fixed deals, for a window running from 1 October 2026 until 31 March 2027²⁷.

The end date is set in legislation. The zero rate will be replaced with the reduced rate after 31 March 2027 across the whole of the United Kingdom unless the government extends it²⁸, and the explanatory note to the relevant order confirms the reduced rate applies from 1 April 2027²⁹. Campaigning groups have asked the Chancellor to confirm that the reduction will not lapse on 31 March 2027, so the position beyond that date is a live political question rather than a settled fact.

For regional bills, the VAT position matters because the cap's published values are exclusive of VAT, which suppliers then apply to consumer bills²⁰. A zero rate for six months means the capped rates in that window translate into bills at face value; the return of the reduced rate from 1 April 2027 would add it back. The detail of how VAT is charged on energy is covered on VAT on energy bills.

What regional differences mean for generating your own power

The regional structure of the cap tells you something important about where your bill comes from and what you can and cannot control. The part you cannot control is the network: distribution costs driven by geography, population density and legacy infrastructure set your standing charge and part of your unit rate, and no supplier switch changes them¹³. The part you can control is the energy you draw through that network.

This cuts both ways for a household aiming at self-sufficiency. On one hand, every kWh you do not buy, whether through insulation, reducing your energy bill or generating your own, is charged at your region's unit rate, and in a high-rate region like North Wales and Mersey at 27.66p per kWh, each avoided unit is worth more¹. On the other hand, the standing charge survives every efficiency measure: a home using almost nothing still pays 70.76p a day in the most expensive region, a fixed daily cost before a single unit is drawn¹. A household that cuts usage to near zero finds that most of what remains is the fixed, regional, unavoidable part.

The levy picture is similar. AAHEDC adds £1.14 a year to a typical bill to support distribution in Northern Scotland⁴, and other policy costs and levies are recovered through bills across all regions, as covered under policy costs and levies. These are shared costs of a shared network, and they do not disappear with a solar panel.

There is also a sign that the regional logic is softening. With more renewable energy generated regionally and locally, the argument that standing charges must be higher in regions such as Scotland to accommodate higher distribution costs no longer holds as it did¹³. Local generation feeding local demand is, in effect, energy independence at network scale, and it erodes the very cost differences this page describes. For the individual household, though, the practical position today is clear: your region sets the floor of your bill, and your usage sets everything above it.