Gas Unit Cost UK 2026 — Current Price Per KWh and Standing Charge

These are the maximum rates set by the Ofgem energy price cap for Q1 2026 (January to March 2026). They apply to customers on default or standard variable tariffs across Great Britain.

The gas unit cost of 6.24 pence per kilowatt hour represents a decrease from the previous quarter's rate of 6.76p/kWh. For a typical household using 11,500 kWh of gas per year, the unit rate alone accounts for approximately £717.60 annually.

When suppliers refer to a "unit" of gas, they mean 1 kilowatt hour (kWh) of energy. This is the standard billing unit used across the UK energy industry.

However, your gas meter does not measure kWh directly. Gas meters measure the volume of gas that passes through them, either in cubic metres (m³) for metric meters or cubic feet (cu ft) for older imperial meters. Your supplier then converts this volume into kWh for billing purposes.

For example, if you use 1 cubic metre of gas, that equates to roughly 11.19 kWh(1 × 1.02264 × 39.5 ÷ 3.6). You can use our gas units to kWh calculator to convert your meter readings into kWh.

The Ofgem energy price cap is a limit on the maximum amount that energy suppliers can charge per unit of gas and electricity for customers on default tariffs. It was introduced in January 2019 to protect consumers from being overcharged.

Key points about the price cap:

• It sets a maximum, not a fixed price — suppliers can charge less than the cap but not more
• Updated quarterly — Ofgem reviews the cap every three months (January, April, July, October)
• Applies to default/variable tariffs only — if you are on a fixed-rate deal, the cap does not apply to you
• Covers both unit rates and standing charges — both components are capped
• Based on wholesale costs — the cap reflects changes in wholesale gas prices, network costs, and supplier operating costs

The price cap figure often quoted in the media (e.g. "£1,738 per year") refers to what a typical dual-fuel household would pay annually. Your actual bill depends entirely on how much energy you use. For more detail, see the official Ofgem price cap guidance.

The table below shows how the Ofgem price cap gas unit rate has changed over recent quarters. Prices have fluctuated significantly since the energy crisis of 2022.

As you can see, gas prices have been volatile. The unit rate has ranged from 5.48p to 6.76p/kWh over the past two years. These fluctuations are driven primarily by wholesale gas market prices, which are influenced by global supply and demand, geopolitical events, and seasonal factors.

The gas standing charge is a fixed daily fee you pay to your energy supplier regardless of whether you use any gas. Under the current Ofgem price cap, the gas standing charge is:

The standing charge covers the costs of maintaining the gas network, your meter, and your connection to the gas grid. You pay this charge even during summer months when you might not use any gas for heating.

There is ongoing debate in the UK about whether standing charges should be reduced or abolished entirely. Critics argue they disproportionately affect low-usage households and those in fuel poverty. Ofgem has been consulting on standing charge reform as part of its broader market review.

Your gas bill is made up of three components: the unit rate (based on how much gas you use), the standing charge (a fixed daily fee), and 5% VAT.

While the Ofgem price cap sets a national maximum, actual gas prices can vary slightly between regions. The UK gas network is divided into several distribution zones, and the cost of maintaining and operating the network differs in each area.

In practice, the differences are relatively small — typically within a fraction of a penny per kWh. Standing charges may also vary slightly by region, as network costs differ depending on the local gas distribution network.

Northern Ireland has a separate energy market and is not covered by the Ofgem price cap. Prices there are regulated by the Utility Regulator.

Even with the price cap in place, there are steps you can take to reduce what you pay for gas: