The unit rate is the part of your tariff that depends on how much energy you use.
Your meter records your energy consumption in kilowatt hours (kWh). The number of kWh you use is multiplied by the unit rate to calculate your consumption charges.
If you’re being charged for water, this will be in cubic meters (m³).
What is included in the unit rate?
Depending on how your development is supplied with energy, the unit rate may include:
- The cost of purchasing energy for the building.
- The cost of generating heat for your development, where applicable.
- Energy losses that occur as heat is produced and distributed through the communal heating network.
- VAT at the reduced residential rate of 5%.
The unit rate shown on your bill already includes VAT.
For example
If your unit rate is 12p per kWh and you use 100 kWh of energy during the billing period:
| Usage | Unit Rate | Cost |
| 100 kWh | 12p per kWh | £12.00 |
This charge would then be added to any standing charges or administration fees that apply to your tariff.
Example tariff breakdown
The exact breakdown will vary between developments, but a typical unit rate may look something like this:
This example is for illustration only and does not represent the tariff for every development.
Want to learn more?
For more information about the organisations involved in providing energy services at your development, please see our Who’s responsible for what in my building? article.
If you'd like to learn more about how tariffs are calculated, please see our How has my tariff been calculated? article.