What a unit rate is
The unit rate is the price you pay per kilowatt hour (kWh) of electricity you use. It is the core number that determines most of your bill.
A kilowatt hour is simpler than it sounds. One kilowatt hour equals a 1 kilowatt (1,000-watt) appliance running continuously for one hour. A standard electric kettle uses about 2-3 kWh per hour of boiling. A washing machine uses roughly 1-2 kWh per cycle. An electric oven uses 2-3 kWh for a one-hour cook.
The typical UK household uses between 3,000 and 4,000 kWh of electricity per year. Multiply your annual usage by your unit rate, and you have the usage portion of your annual bill. Add the standing charge (more on that shortly) and you have your total.
For example: 3,500 kWh multiplied by 26p equals £910 in usage charges. Add a standing charge of around 61p per day (approximately £223 per year), and your total annual bill reaches roughly £1,133. That is below the Ofgem price cap for July 2026, which is set at £1,862 for the typical household, because the cap assumes slightly higher usage and includes both gas and electricity for dual-fuel homes.
The unit rate is the number that smart energy users focus on. The standing charge is largely fixed. The unit rate is where the savings live.
How to find your unit rate on your bill
Every UK electricity bill must display the unit rate clearly, but the exact location varies by supplier. Here is where to look:
On a British Gas bill, the unit rate appears in the "Your charges" section, labeled "Cost per kWh."
On an E.ON Next or EDF bill, look for a breakdown table showing units used, rate per unit, and total charge.
On an Octopus Energy bill, the unit rate appears in the statement summary alongside the standing charge. Octopus also provides a detailed online account and app showing your half-hourly consumption data, which is far more revealing than a paper bill.
If you cannot find the unit rate on your bill, look for the phrase "per kWh" and the number next to it. It will be expressed in pence, for example 26.11p/kWh. That is your unit rate.
You can also find it on your online account portal, on any annual summary, or by calling your supplier's customer service line. It takes less than two minutes to locate.
What is a "normal" UK unit rate in 2026?
The Ofgem price cap for electricity sets the maximum unit rate suppliers can charge on standard variable tariffs. From July 2026, the price cap unit rate for electricity is 26.11p per kWh.
This is the "going rate" for most UK households not on a fixed deal or specialist tariff. It is what roughly 70% of UK households pay for every unit they consume, regardless of whether they use electricity at 2am or 6pm.
For context, that rate has been significantly higher than historic norms. Before the 2022 energy crisis, the typical UK unit rate was around 15-17p/kWh. The post-crisis period has kept rates elevated. The July 2026 cap of 26.11p represents a slight reduction from the October 2025 cap, but remains far above pre-crisis levels.
Fixed-rate tariffs from suppliers like Octopus, E.ON, EDF, and others may offer rates slightly below or above the cap depending on wholesale market conditions. Always compare the unit rate directly when switching, not just the headline monthly cost.
How the unit rate changes on time-of-use tariffs
Here is where the conversation shifts from information to opportunity.
On a standard flat-rate tariff, your unit rate is fixed. You pay 26.11p whether you run your washing machine at 3am or 6pm on a winter Monday. The price never changes.
On a time-of-use tariff like Octopus Agile, the unit rate changes every 30 minutes. The same electricity, from the same grid, through the same wires, costs a completely different amount depending on when you use it.
Overnight (typically midnight to 6am), Agile unit rates regularly fall to 2-8p/kWh. At peak times (5pm to 8pm), they rise to 25-50p/kWh. During periods of very high renewable generation, they occasionally turn negative, meaning Octopus pays you to use electricity, sometimes as much as negative 20p/kWh.
You can track these live unit rates on the AgileAlert dashboard, which updates every 30 minutes and shows prices 24 hours ahead so you can plan your usage around the cheapest windows.
The average Agile customer saves £440 per year compared to the standard variable tariff. That saving comes almost entirely from exploiting the gap between peak and off-peak unit rates.
Why the gap between peak and off-peak unit rates is your savings opportunity
The spread between the cheapest and most expensive unit rates on Agile is enormous. At 3am on a windy night, you might pay 3p/kWh. At 6pm on a cold, still January evening, you might pay 45p/kWh. That is a 15-fold difference for exactly the same electricity.
Every time you shift a high-energy task from the peak window to the overnight window, you capture that spread as a saving. The maths is straightforward:
A washing machine cycle uses roughly 1.5 kWh. At 45p, that costs 67p. At 4p, it costs 6p. Shift one load per day and you save 61p, which amounts to roughly £222 per year from a single appliance.
An electric vehicle charging a 60kWh battery costs £27 at 45p/kWh and £2.40 at 4p/kWh. If you charge overnight three times per week, that single behaviour change saves roughly £1,295 per year.
Most households will not capture the maximum theoretical saving because usage patterns cannot be shifted entirely. But even shifting 30-40% of usage to cheap overnight windows delivers hundreds of pounds in annual savings.
The cheapest time to do washing guide gives a practical breakdown of how to build these habits. The perfect appliance timing guide covers every major household appliance.
The unit rate is not a passive number on your bill. On Octopus Agile, it is a dynamic signal updated every 30 minutes, telling you exactly when electricity is cheap enough to use freely and when to wait. Most households ignore that signal entirely. The ones who read it save hundreds of pounds per year.
Check the live AgileAlert dashboard now and see what rates are available in your region today. The overnight windows often drop well below 10p. That is money available to anyone with a smart meter and the willingness to shift a few habits.