The most useful numbers on an energy tariff are often not the headline annual price-cap figure. They are the unit rates and standing charges that determine how a household bill is calculated.
For the period from 1 October to 31 December 2026, Ofgem has published new average Direct Debit rates for households on covered default tariffs in England, Scotland and Wales.
The average electricity unit rate is 26.32p per kWh, with an average electricity standing charge of 54.83p per day.
The average gas unit rate is 7.97p per kWh, with an average gas standing charge of 29.68p per day.
These are Great Britain averages. Actual rates vary by region and can also differ according to payment method and meter type.
What is a unit rate?
A unit rate is the amount charged for each kilowatt-hour, or kWh, of energy used.
If your electricity tariff is 26.32p per kWh and you use 100 kWh of electricity, the usage element would be approximately £26.32 before considering the standing charge.
The same principle applies to gas.
At an average gas rate of 7.97p per kWh, 1,000 kWh of gas use would create an energy-use charge of about £79.70 before the standing charge.
The more energy a household uses, the more important the unit rate becomes.
What is a standing charge?
The standing charge is a daily amount that is charged even on days when very little energy is used.
From October, the Great Britain average Direct Debit standing charges published by Ofgem are:
- 54.83p per day for electricity
- 29.68p per day for gas
Together, those average standing charges equal 84.51p per day.
Over 365 days, that is approximately £308.46 before any electricity or gas consumption is added.
Your actual standing charges can be above or below the national average because regional costs differ. See our guide to standing charges by region across Great Britain for the full breakdown.
How a simple annual bill estimate works
A basic annual estimate can be built from three parts:
- annual electricity usage multiplied by the electricity unit rate
- annual gas usage multiplied by the gas unit rate
- daily electricity and gas standing charges multiplied by 365
For example, Ofgem's medium 2026 consumption benchmark is 2,500 kWh of electricity and 9,500 kWh of gas.
Using the October average Direct Debit rates:
- electricity usage costs roughly £658
- gas usage costs roughly £757
- combined annualised standing charges are roughly £308
That comes to approximately £1,724, which is consistent with Ofgem's £1,723 headline price cap figure after rounding and the way the regulator presents the cap.
This is an illustration, not a personalised quote.
How the October rates compare with July
For 1 July to 30 September 2026, Ofgem's average Direct Debit rates were:
- electricity: 26.11p per kWh
- electricity standing charge: 57.19p per day
- gas: 7.33p per kWh
- gas standing charge: 29.04p per day
From October:
- the electricity unit rate rises slightly
- the electricity standing charge falls
- the gas unit rate rises
- the gas standing charge rises slightly
That means the effect will not be identical for every household.
A home that uses a large amount of gas may feel the October change differently from an electricity-heavy household.
Why your own rates may not match these numbers
Ofgem's figures are averages.
Your tariff may show a different rate because of:
- your energy region
- how you pay
- whether you use a single-rate or multi-rate electricity meter
- the tariff your supplier applies
- whether you are on a fixed contract rather than a covered default tariff
The most reliable source for your personal rate is your supplier bill, tariff information or online account.
A note on electricity VAT
From 1 October 2026 to 31 March 2027, Ofgem says there is no VAT on electricity in the published cap figures.
The gas figures continue to include VAT at 5%.
That change means comparisons with earlier periods are not as simple as looking at one headline percentage.
What if you use Economy 7?
Economy 7 and other multi-rate electricity tariffs use different rates at different times of day.
Ofgem says the combined structure remains subject to the cap, but a single national average rate does not accurately represent an individual Economy 7 household.
If you use a multi-rate meter, check the day and night rates shown on your actual tariff.
What to check on your next bill
When the October rates take effect, compare your bill with your tariff information and confirm:
- unit rate for electricity
- unit rate for gas
- standing charge for electricity
- standing charge for gas
- annual usage
- whether estimated or actual meter readings were used
Those five pieces of information will tell you more about your likely cost than the national headline alone.
Sources
See Ofgem energy price cap unit rates and standing charges and Ofgem October to December 2026 price cap announcement. Figures checked on 13 September 2026.