--- title: "Cheap rate electric: how much is a kWh? 26.11p Under the cap" description: "Cheap rate electric can save you money. The average electricity rate is 26.11p per kWh from 1 July to 30 September 2026." url: "https://www.fuseenergy.com/blog/cheap-rate-electric" updated: "2026-10-17" --- # Cheap rate electric: how much is a kWh? 26.11p Under the cap Finding cheaper electricity rates, particularly during off-peak hours, can lead to significant savings on your monthly energy bills. This guide explores your options, from understanding different tariff types to making the most of smart meter technology. Unlock smarter, cheaper electricity rates with Fuse Energy. We offer digital control, time-of-use tariffs, and 24/7 support for budget-conscious households. Click [here](https://www.fuseenergy.com/app/boarding/premises) to switch to Fuse Energy today. ## Understanding cheap rate electricity tariffs Electricity tariffs determine how much you pay for each unit of electricity you use. These rates are influenced by various factors, including the Ofgem Price Cap and the type of meter you have. ### What are time-of-use tariffs? Time-of-use (TOU) tariffs charge different prices for electricity at different times of the day or on different days. Energy is typically cheaper during off-peak times, such as overnight, when demand on the National Grid is lower, or when more renewable energy is being generated. Conversely, prices are higher during peak periods, usually weekday evenings when demand is highest. ### The role of the Ofgem Price Cap Ofgem, the UK's energy regulator, sets a price cap that limits the maximum unit rates and standing charges suppliers can charge on default tariffs. For Direct Debit customers on a Standard Variable Tariff, the average electricity rate is 26.11p per kWh from 1 July to 30 September 2026, according to Ofgem. This cap ensures a degree of fairness, but it does not limit your total bill; your actual cost depends on how much electricity you use. ### Single-rate vs dual-rate tariffs Most standard tariffs are single-rate, meaning you pay the same price per unit of electricity regardless of when you use it. Dual-rate tariffs, such as Economy 7, offer two different prices: a higher rate during peak hours and a significantly lower rate during off-peak hours, typically overnight. While dual-rate tariffs can offer substantial savings, their peak rates are often higher than those on standard tariffs, so it is crucial to assess if your usage patterns align with the cheaper off-peak windows. ## When is electricity cheapest in the UK? The cheapest times to use electricity in the UK are generally during off-peak hours, which are defined by your tariff and supplier. ### Off-peak hours explained Economy 7 tariffs provide seven hours of cheaper electricity, usually overnight. The exact times vary by supplier and region, but they commonly fall between midnight and 8am. Some areas might even have split off-peak periods or slight variations when clocks change. > **What is Economy 7?** > > Economy 7 is a dual-rate electricity tariff offering a cheaper unit rate for seven hours, typically overnight, and a higher rate during the remaining 17 hours. It requires a compatible meter to record usage at these two different rates. It is designed for households that can shift a significant portion of their electricity consumption to the off-peak window. ### Factors influencing cheaper rates Beyond standard Economy 7, dynamic time-of-use tariffs can offer even more flexible and potentially cheaper rates. These tariffs often respond to real-time grid conditions, making electricity cheaper when demand is very low or when there is an abundance of renewable energy generation (e.g., on windy or sunny days). ### The benefits of overnight electricity Using electricity overnight offers several advantages. Besides the lower unit rates, it helps balance the National Grid by encouraging consumption during periods of lower demand. This can also support a greener energy system by utilising electricity when renewable generation might be higher. Running high-energy appliances like washing machines, dishwashers, or charging electric vehicles during these hours can significantly reduce your energy bills. ## Smart meters: your gateway to cheaper rates Smart meters are essential for unlocking the full potential of cheaper electricity rates and managing your energy consumption effectively. Many homeowners often pair this with a [smart meter installation](https://www.fuseenergy.com/blog/smart-meter-installation) to track usage. ### How smart meters enable time-of-use tariffs Smart meters automatically send your energy readings to your supplier, often every 30 minutes. This granular data allows suppliers to offer a wider range of time-of-use tariffs, including dynamic ones that adjust prices based on real-time demand. Without a smart meter, you are generally limited to basic single-rate or older dual-rate tariffs that cannot offer the same flexibility or potential savings. ### Checking your meter's compatibility If you have an older multi-rate meter, such as a traditional Economy 7 meter, it will record your peak and off-peak usage. However, for the most advanced time-of-use tariffs, a smart meter is usually required. You can typically check your meter type by looking at the meter itself or contacting your current energy supplier. ### Getting a smart meter upgrade The UK government's smart meter rollout programme aims to replace traditional meters across Great Britain. If you do not yet have a smart meter, your energy supplier can arrange a free upgrade. This is particularly important for those with older Radio Teleswitch Service (RTS) meters, which are being phased out. The RTS signal, which controls some older multi-rate meters, began to be switched off on 30 June 2025, meaning these meters need to be replaced with smart meters by your current supplier. ## Finding and switching to a cheap rate tariff Finding the right cheap rate electricity tariff involves understanding your usage and comparing available options. ### Comparing electricity tariffs effectively When comparing tariffs, look beyond just the unit rate. Consider the standing charge, the length of the contract, and any exit fees. For time-of-use tariffs, evaluate if the off-peak hours align with your lifestyle and how much of your electricity usage you can realistically shift to those periods. Understanding all components of your energy bill is crucial. Comparison websites can be a useful starting point, but always check the specific terms and conditions directly with the supplier. ### Key questions to ask before switching Before committing to a new tariff, ask your potential supplier: * **Exact off-peak and peak hours:** Do these change with daylight saving? * **Unit rates:** What are the unit rates for both peak and off-peak periods, and what is the daily standing charge? * **Smart meter requirement:** Do I need a smart meter, and if so, is my current meter compatible or will I receive a free upgrade? * **Exit fees:** Are there any exit fees if I decide to switch again before the contract ends? * **Billing:** How will my bills be calculated, and how often will I receive them? ### The switching process Switching energy suppliers has become a straightforward process. Once you have chosen a new tariff and supplier, they will handle most of the transfer. You will typically be given a 14-day cooling-off period, which starts from when your switch request is submitted (the day the contract is agreed). The switch itself usually takes up to 5 working days to complete. You will not experience any interruption to your electricity supply during the switch. ## Maximising savings with cheap rate electric Once you are on a cheap rate tariff, actively managing your energy consumption is key to maximising your savings. ### Shifting your energy usage The most effective way to save money on a time-of-use tariff is to shift as much of your electricity usage as possible to the cheaper off-peak hours. This means planning when you run appliances. For example, instead of running your dishwasher or washing machine during the day, set them to run overnight. ### Appliances that benefit most from off-peak rates High-energy consumption appliances are prime candidates for off-peak usage. These include: * Washing machines and tumble dryers * Dishwashers * Electric vehicle (EV) chargers * Storage heaters and hot water immersion heaters * Electric showers (if you can time them) The average UK home uses around 2,500 kWh of electricity per year, according to Ofgem. By shifting even a portion of this usage to cheaper times, you can make a noticeable difference to your bills. ### Monitoring your consumption with an app Many modern energy suppliers offer apps that allow you to monitor your electricity consumption in near real-time. Fuse Energy's app, for instance, provides the tools and transparency needed to understand and optimise your usage for cheaper rates. This allows you to track how much electricity you are using during peak and off-peak times, helping you adjust your habits and maximise your savings. For manual meters, knowing how to read your electricity meter accurately is also important for billing. Fuse also offers 24/7 human customer support to help you navigate tariff options and make the most of cheaper electricity rates. Managing your energy bills should be clear and easy to understand. Fuse Energy focuses on straightforward pricing, so you can see exactly what you're paying without unnecessary complexity. If you have a smart meter, you can view detailed usage data through the app or website, helping you understand how you can lower your bills. Our 24/7 human support team is always on hand with fast response times whenever you need help. Click [here](https://www.fuseenergy.com/app/boarding/premises) to switch to Fuse Energy today. Find out about our mission by clicking [here](https://www.fuseenergy.com/mission). --- Rates, availability, and regional off-peak windows change. Check the source page for current terms. **Disclaimer** For the avoidance of doubt, this article is provided for informational purposes only and is not intended to constitute legal or financial advice. The author and/or Fuse Energy shall not be responsible for any losses arising out of any reliance on the information contained herein.