Is gas cheaper than electricity in the UK?

Yes — gas is significantly cheaper than electricity per unit in the UK. Under the April 2026 energy price cap, gas costs approximately 6.99p per kWh while electricity costs approximately 24.50p per kWh — making electricity around 3.5 times more expensive per unit. However, cost per kWh is only part of the picture; the efficiency of how each fuel is used matters too.

Gas vs electricity cost comparison

Source: Ofgem energy price cap Q2 2026 (April–June 2026). Rates are averages for a typical direct debit customer in England, Wales, and Scotland.

Why is electricity so much more expensive than gas?

• Gas is a primary fuel extracted directly — lower processing and distribution costs
• Electricity must be generated (from gas, nuclear, or renewables) and transmitted via the national grid, adding infrastructure costs
• Environmental levies and network charges are disproportionately applied to electricity bills
• Both domestic gas and electricity are charged at 5% VAT in the UK

Gas boiler vs heat pump: which is cheaper to run?

Despite gas being cheaper per kWh, heat pumps can be cheaper to run because they are 2.5–4x more efficient. A heat pump producing 3 kWh of heat per 1 kWh of electricity consumed (CoP of 3) means the effective heat cost is 24.50p divided by 3 = 8.17p per kWh of heat — comparable to gas.

How to reduce your energy bills

• Switch to a fixed energy tariff if rates are lower than the price cap
• Reduce your thermostat by 1°C — saves approximately 10% on heating costs
• Insulate loft and walls — can cut heating costs by 20–30%
• Check eligibility for the Warm Home Discount (£150 off electricity bill for qualifying households)
• Use appliances off-peak if you have an Economy 7 or time-of-use tariff