Is Gas Cheaper Than Electricity in the UK? 2026 Comparison

Chandraketu Tripathi

Finance Editor, Kaeltripton

Published 7 Apr 2026

Last reviewed 18 Apr 2026

✓ Fact-checked

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.

April 2026 Ofgem price cap: Gas — 6.99p/kWh | Electricity — 24.50p/kWh | Gas standing charge 32.67p/day | Electricity standing charge 61.64p/day.

Gas vs electricity cost comparison

Fuel	Unit rate (April 2026)	Standing charge (April 2026)
Gas	6.99p per kWh	32.67p per day
Electricity	24.50p per kWh	61.64p per day
Ratio	Electricity is approximately 3.5x more expensive per kWh	—

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.

Heating system	Effective cost per kWh heat	Typical annual cost
Gas boiler (90% efficiency)	~7.77p	£900–£1,300
Heat pump (CoP 3.0)	~8.17p	£900–£1,400
Electric storage heaters	~27.2p	£2,000–£3,000
Oil boiler	~9–12p (varies)	£1,200–£1,800

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

Verdict

Gas is cheaper per unit — but efficiency matters

For heating, gas remains cheaper per unit than electricity in 2026. Heat pumps narrow the gap significantly through efficiency gains. If you have a well-insulated home, a heat pump can match or beat gas running costs — though installation costs are much higher.

Frequently asked questions

What is the current gas price per kWh in the UK?

Under the April 2026 Ofgem price cap, gas costs 6.99p per kWh for a typical direct debit customer in England, Wales, and Scotland.

What is the current electricity price per kWh?

Under the April 2026 Ofgem price cap, electricity costs 24.50p per kWh for a typical direct debit customer in England, Wales, and Scotland.

Is it cheaper to heat your home with gas or electric?

For most UK homes, gas central heating is cheaper to run than standard electric heating. The exception is heat pumps, which are efficient enough to close the gap in well-insulated homes.

Will energy prices go down in 2026?

Ofgem reviews the energy price cap quarterly. Forecasts suggest the cap may fall slightly in Q3 2026 but predictions are uncertain. Check ofgem.gov.uk for the latest cap announcement.