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Energy Glossary
Unit Rate
The price you pay per kWh (kilowatt-hour) of energy consumed.
What is a Unit Rate?
The unit rate is the price you pay per unit of energy consumed, measured in pence per kilowatt-hour (kWh). It's the main variable component of your energy bill.
How it works
If your unit rate is 15p/kWh and you use 1,000 kWh in a month:
- 1,000 kWh × 15p = £150 in usage costs
- Plus your standing charge
Different rates
Some tariffs have multiple unit rates:
- Single rate: Same price all the time
- Day/Night (Economy 7): Cheaper rate overnight
- Peak/Off-peak: Variable by time of day
Why it matters
For high-usage businesses (restaurants, manufacturing), even a 1p difference in unit rate can mean hundreds of pounds over a contract term.
What we do
We compare unit rates across suppliers to find the best deal for your usage pattern. But we also consider standing charges, contract length, and exit fees.
- Peak/Off-peak: Variable by time of day
- Day/Night (Economy 7): Cheaper rate overnight
- Single rate: Same price all the time
- Plus your standing charge
Related Terms
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