Money Guides
⏱ 3 min read
📅 Updated Apr 2026
Is Gas Cheaper Than Electricity in the UK? 2026 Comparison
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) |
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| 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 questionsWhat 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. |
Part of our complete guide: Energy Price Cap July 2026 - Forecasts & What To Do → Compare through a verified energy broker →
Editorial Disclaimer
The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
CT
Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.
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