How domestic gas billing works in the UK
Most UK homes pay for gas using two charges: a unit rate for each kilowatt hour (kWh) you use, and a fixed daily standing charge for keeping your home connected. Your monthly bill is your unit rate multiplied by the kWh consumed, plus the standing charge for the billing days, minus any discounts and plus VAT.
Unit rate (kWh)
The price you pay for each kWh of gas you use. Your actual usage depends on home size, insulation, boiler efficiency and thermostat settings.
Standing charge
A daily fixed amount that covers the cost of network maintenance, metering and administration. It’s charged even if you don’t use any gas that day.
Tariff type
Most homes are on variable tariffs aligned with the Ofgem price cap. Fixed tariffs may be available; suitability depends on market conditions and your usage.
Tip: If you don’t know your annual kWh usage, check the “kWh used this year” on your bill or ask your current supplier. Accurate usage helps produce a more precise quote.
About the Ofgem price cap
The Ofgem price cap limits the unit rates and standing charges that suppliers can charge customers on standard variable tariffs. It reflects underlying wholesale, network and policy costs and is typically updated periodically. The cap does not limit your total bill — your usage still determines how much you pay.
- The cap usually differs by region and meter type (credit or prepayment).
- Prepayment customers no longer pay a premium versus comparable credit tariffs under recent regulatory changes.
- Changes to the cap can increase or decrease bills; consider fixed options if you prefer certainty.
For the current cap level in your region, use our quote tool above or review the latest information on the Ofgem website.
Smart, credit and prepayment gas meters
Smart meters
Smart meters automatically send readings, eliminate estimated bills and provide an in-home display so you can track usage and costs in near real time. Installations are typically free from your supplier.
Credit meters
Standard pay-monthly meters. Submit readings or use your smart meter to ensure accurate billing. Direct debit often unlocks the best rates.
Prepayment meters
Pay-as-you-go via card or key. Helpful for budgeting and debt management. You can request support, discretionary credit, or a switch to credit if suitable.
Simple steps to switch or set up your gas
- Get a quote: Provide your postcode, meter type and annual kWh.
- Choose a tariff: Compare variable vs fixed options and payment methods.
- Complete the switch: We’ll guide you through the process. There’s no interruption to supply.
- Submit your opening reading: Ensures correct closing and opening bills.
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Ways to reduce your gas usage without sacrificing comfort
- Lower boiler flow temperature to around 55–60°C for condensing boilers to improve efficiency.
- Use smart thermostats and TRVs to heat rooms you use, when you use them.
- Improve insulation: loft, cavity/solid wall insulation, draught proofing and hot water cylinder jackets.
- Service your boiler annually for safety and efficiency.
- Shower efficiently and use lower temperature cycles for hot water where appropriate.
Grants and support may be available via schemes such as the Boiler Upgrade Scheme and energy efficiency programmes. Eligibility varies by region and property type. Always check the official programme websites for current details.
Help and protections
- Priority Services Register: Free support for pensioners, those with disabilities or medical needs. Ask your supplier to add you.
- Affordability support: Talk to your supplier if you’re struggling. Options can include payment plans, discretionary credit for prepayment meters, and energy advice.
- Gas safety: If you smell gas, call the National Gas Emergency Service on 0800 111 999 immediately. Install and regularly test carbon monoxide alarms.
Gas market at a glance
The UK gas market is supplied through a mix of domestic production and imports. Retail prices reflect wholesale costs, network charges, policy costs and VAT. While market conditions change, the fundamentals remain: lower usage and higher efficiency protect your bills in any environment.
| Feature | Variable tariff | Fixed tariff |
|---|---|---|
| Price changes | Can move with the market and price cap | Locked for the term |
| Exit fees | Usually none | May apply |
| Budget certainty | Lower | Higher |
Frequently asked questions
What information do I need for a gas quote?
Your postcode, meter type (credit/prepayment/smart) and annual usage in kWh. A recent bill has everything you need. If you don’t know your usage, we can estimate based on home size.
How long does a switch take?
Switches typically complete within a few weeks. Your supply won’t be interrupted and you’ll only be billed once for the same energy period.
Can I get a smart gas meter?
Most homes are eligible. Installations are usually free. Smart meters send automatic readings and help you track costs. Book via your current supplier.
What is the unit rate vs the standing charge?
The unit rate is the price per kWh used; the standing charge is a daily fixed cost for your connection and metering. Your total bill equals both combined, plus VAT.
Is dual fuel better value?
Sometimes. Dual fuel (gas and electricity together) can simplify billing and may offer discounts, but always compare against separate suppliers to ensure the best total cost.
What if I’m on a prepayment meter and struggling?
Contact your supplier early. Support can include discretionary credit, payment plans, and advice. You may be able to move to a credit meter if appropriate and eligibility is met.