Households in parts of Great Britain are paying more than twice the effective cost per unit of energy compared with those in other regions, a study into domestic power costs shows.
Analysis of all 350 local authorities across England, Scotland, and Wales by the Alan Boswell Group found that access to the mains gas network is the primary factor driving unit rates.
The research combined local household energy consumption figures with Ofgem’s regional price cap rates for October – December 2026. Under the cap, electricity costs an average of 26.32p per kWh, compared with 7.97p per kWh for gas, making electricity roughly 3.3 times more expensive per unit. Consequently, properties relying entirely on electricity face higher effective costs.
Most expensive energy regions
Island and rural communities dominate the list of regions paying the highest effective prices per unit of energy
| Rank | Local authority | Effective price per kWh | Homes on mains gas | Modelled annual bill |
| 1 | Orkney Islands | 29.10p | 0.00% | £2,123.69 |
| 2 | Isles of Scilly | 28.80p | 0.00% | £2,639.61 |
| 3 | Shetland Islands | 28.73p | 0.00% | £2,423.33 |
| 4 | Na h-Eileanan Siar | 26.88p | 9.50% | £1,932.21 |
| 5 | Ceredigion | 22.84p | 26.30% | £1,641.12 |
| 6 | City of London | 21.99p | 28.70% | £2,097.07 |
| 7= | Highland | 21.09p | 32.90% | £1,949.98 |
| 7= | Isle of Anglesey | 21.09p | 47.00% | £1,825.31 |
| 8 | Powys | 20.33p | 46.10% | £1,763.11 |
| 9 | Cornwall | 20.25p | 52.00% | £1,809.20 |
| 10 | Gwynedd | 20.21p | 51.30% | £1,866.59 |
Comparing Orkney (29.10p) with East Dunbartonshire (13.29p) shows that Orkney residents pay 2.19 times more per unit, adding an extra 15.81p for every kWh used.
Cheapest energy regions
The 10 cheapest local authorities benefit from extensive mains gas connectivity, alongside lower regional electricity costs in areas such as the East Midlands
| Rank | Local authority | Effective price per kWh | Homes on mains gas | Modelled annual bill |
| 1 | East Dunbartonshire | 13.29p | 94.30% | £2,261.50 |
| 2 | East Renfrewshire | 13.36p | 91.80% | £2,315.52 |
| 3 | Mansfield | 13.54p | 97.60% | £1,948.11 |
| 4 | Oadby and Wigston | 13.58p | 97.70% | £2,195.48 |
| 5 | Blaby | 13.59p | 97.00% | £1,979.95 |
| 6 | Harrow | 13.63p | 88.70% | £2,346.74 |
| 7 | Pendle | 13.65p | 95.60% | £1,995.38 |
| 8= | Ashfield | 13.68p | 97.40% | £1,888.44 |
| 8= | Broxtowe | 13.68p | 96.50% | £1,959.33 |
| 9 | Rossendale | 13.69p | 95.80% | £2,070.15 |
| 10 | Redbridge | 13.70p | 90.50% | £2,165.06 |
Impact of standing charges and usage
Regional standing charges create further disparities. The Isle of Anglesey, Powys, and Gwynedd carry the highest effective standing charge burdens at 3.45p, 3.43p, and 3.28p per kWh, respectively. All three fall within Ofgem’s Merseyside and Northern Wales region, where daily electricity standing charges reach 67.66p, compared with 42.92p in London. This creates a difference of roughly £90 annually before any electricity is used.
Researchers noted that total bill size does not always align with unit cost. Elmbridge in Surrey has the highest overall annual bill at £2,735.09 due to higher consumption, yet pays a lower effective rate of 14.12p per kWh. Conversely, Tower Hamlets records the lowest annual bill at £1,374.04, despite an effective unit rate of 18.45p per kWh.