How Much Does It Cost to Run an Electric Heater? (UK, October 2026 Price Cap)

Last updated: Monday 19 October 2026 (Europe/London).
Next update: when Ofgem confirms the price cap for 1 January to 31 March 2027.
By: Switch Editorial Team, Switch Squid Ltd

As of 19 October 2026, a 2kW electric heater costs about 52.6p an hour to run on full power under the Ofgem price cap, which sets an average electricity rate of 26.32p per kWh for Direct Debit customers from 1 October to 31 December 2026. Three hours an evening comes to about £1.58 a day, or £47.38 over 30 days. A smaller 1kW heater costs about 26.3p an hour, and a thermostat that switches the heater off once the room is warm will cut those figures. This SwitchSquid guide shows how to work out the cost of any heater, how it compares with gas central heating, and when a cheaper tariff makes a bigger difference than a cheaper heater. We may earn a commission if you buy through links on this page; it doesn’t change the price you pay.

Sources: Ofgem — price cap unit rates and standing charges, Ofgem — changes to the price cap, 1 October to 31 December 2026, UK Health Security Agency — keeping warm and well, Electrical Safety First — portable heaters and

Electric heater running costs at the October 2026 price cap

Figures use Ofgem’s average capped electricity rate of 26.32p per kWh for Direct Debit customers in England, Scotland and Wales, 1 October to 31 December 2026, checked on 19 October 2026. They assume full power for every hour and exclude the standing charge. Your rate depends on your region, payment method and tariff.

The standing charge is separate. Under the cap it averages 54.83p a day for electricity, and you pay it whether or not the heater is on, so it doesn’t change the cost of running one more appliance.

Does the type of heater change the cost?

Not per hour at the same power. Fan heaters, convector heaters, oil-filled radiators, panel heaters and halogen heaters all turn almost all the electricity they use into heat. A 2kW fan heater and a 2kW oil-filled radiator cost the same for every hour they draw 2kW.

What differs is how the heat feels and how the heater behaves:

• Fan heaters warm a small room quickly, which suits short bursts, but the warmth fades fast once they switch off.

• Oil-filled radiators take longer to warm up and keep giving off heat after the thermostat clicks off, so they often cycle less.

• Convector and panel heaters warm the air steadily and are often wall-mounted, with timers built in.

• Halogen and infrared heaters warm the person in front of them rather than the whole room, which can work at a desk.

So the cheapest heater to run is the one with a thermostat and timer that you use in the smallest space you need to heat, for the shortest time.

Electric heater vs gas central heating

Per unit, gas is much cheaper. The cap’s average gas rate is 7.97p per kWh, against 26.32p for electricity, so a kilowatt hour of electricity costs about 3.3 times as much as a kilowatt hour of gas. Boilers lose some heat, but even allowing for that, heating the whole home with gas is usually cheaper per unit of warmth than using plug-in heaters.

That doesn’t mean a heater is always the wrong choice. If you are the only person at home during the day and sit in one room, running a 1kW heater in that room for three hours costs about 79p. Heating the whole house with gas to warm one person can cost more. The trick is to turn the rest of the heating down while you do it, and to close the door.

The UK Health Security Agency advises heating the rooms you spend a lot of time in, such as the living room and bedroom, to at least 18°C if you can. That is especially important for older people and anyone with a health condition, so don’t let the cost push you into sitting in a cold home.

Why electricity costs a little less this winter

From 1 October 2026 to 31 March 2027, the government has removed VAT from household electricity in Great Britain. Ofgem has built that into the cap, and its average Direct Debit electricity rate is 26.32p per kWh with no VAT, compared with 26.11p including VAT from July to September. Ofgem says costs can’t be compared directly between the two periods because of the change. Gas still carries 5% VAT.

The overall cap for a typical dual-fuel home on Direct Debit is £1,723 a year for October to December, 4% higher than the previous period. Because the VAT cut only applies to electricity, homes that use more electricity than gas, including those heated by electric heaters, see a bigger benefit. Our guide to VAT on electricity explains the change in more detail.

When a cheaper tariff saves more than a cheaper heater

Because the cost of running a heater follows your unit rate, the tariff often matters more than the model. If you found a fixed tariff charging 22p per kWh, for example, a 2kW heater would cost 44p an hour instead of 52.6p. Over a winter of three hours a day for 26 weeks, that is roughly £240 instead of about £287 for the same heat.

Ofgem points out that the cap changes don’t affect you if you have moved to a fixed-rate tariff. Before you fix, compare the unit rate and the standing charge, check any exit fees, and look at how long the price is locked in. Our guide to fixed vs standard variable tariffs covers the trade-offs. The cap is reviewed every three months, and our January 2027 forecast tracks what may happen next.

If you’d like help comparing, Squid AI, SwitchSquid’s AI deal assistant, can walk you through the questions to ask about any tariff.

Choose a tariff that suits electric heating

• Average capped electricity rate is 26.32p per kWh with a 54.83p daily standing charge

• Check standing charges as well as unit rates

• Exit fees may apply if you leave a fixed deal early

Choose this plan

Economy 7 and storage heaters

If your home has storage heaters, you are probably on Economy 7 or a similar multi-rate tariff, with cheaper electricity at night. Storage heaters charge up overnight and release the heat during the day. Ofgem says the peak and off-peak rates on a multi-rate tariff together can’t exceed the cap.

Using a plug-in heater during the day on Economy 7 can be expensive, because daytime rates are usually higher than a single-rate tariff. Our guide to Economy 7 and the October 2026 price cap shows how to check whether it still suits you.

Ways to cut the cost and stay safe

• Use the thermostat. Set it to the temperature you want and let the heater switch itself off once the room gets there.

• Use a timer. Warm the room before you use it rather than leaving the heater on all evening.

• Heat yourself, not the room. A heated throw or electric blanket uses a fraction of a heater’s wattage. Check its label and use the same sum.

• Stop draughts. The UK Health Security Agency suggests fitting draught excluders around doors, which is cheap and keeps warm air in.

• Plug in safely. Electrical Safety First advises against powering a heater from an extension lead, as leads can be overloaded, and says never to leave a heater on unattended or while you are asleep.

• Keep it clear. Electrical Safety First recommends keeping heaters at least one metre from furniture, curtains and paper, and not drying clothes on them.

If you are on a low income, check whether you qualify for the Warm Home Discount, a one-off £150 off your electricity bill. Our guide to the Warm Home Discount and switching explains how it works if you change supplier.

Fit summary

• A plug-in heater makes sense for: warming one room for a few hours while the rest of the heating stays low.

• Gas central heating is usually cheaper for: keeping a whole home warm for long periods.

• A tariff check is worth it for: anyone who relies on electric heating, because every penny off the unit rate cuts the cost of every hour.

Important conditions

• Costs use Ofgem’s average capped Direct Debit rate; regional rates and standard credit or prepayment rates differ.

• The cap figures apply from 1 October to 31 December 2026; new cap rates apply from 1 January 2027.

• Running costs assume full power; a thermostat or lower setting reduces them.

• The price cap covers default tariffs in England, Scotland and Wales, not Northern Ireland.

• Fixed tariffs can carry exit fees if you leave early.

Final decision card

Heating one room for a few hours? A 1kW to 2kW heater costs about 26p to 53p an hour on the cap, less with a thermostat.
Heating the whole home? Gas central heating is usually cheaper per unit of heat.
Using a lot of electricity this winter? Compare tariffs, because a lower unit rate cuts the cost of every heater and appliance you run.

Check energy deals for your home

• Have your latest bill and yearly kWh ready

• Take a meter reading on switch day

• You have 14 days to cancel after you agree to switch

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FAQ

How much does a 2kW electric heater cost per hour?

About 52.6p an hour on full power at the Ofgem price cap’s average rate of 26.32p per kWh, from 1 October to 31 December 2026. Three hours a day costs about £1.58. A thermostat that cycles the heater on and off will lower the real cost.

Is it cheaper to use an electric heater or the central heating?

Per unit, gas is cheaper: the cap’s average gas rate is 7.97p per kWh against 26.32p for electricity. Heating one room with an electric heater can still cost less than heating a whole house, as long as you turn the rest of the heating down. For keeping a whole home warm, gas central heating is usually cheaper.

Which type of electric heater is cheapest to run?

At the same wattage, they all cost the same per hour, because they all turn electricity into heat. The cheapest in practice is a heater with a thermostat and timer, used in a small room with the door closed. Oil-filled radiators hold heat after switching off, so they often cycle less.

How much does it cost to run an electric heater all day?

A 2kW heater running at full power for 10 hours would cost about £5.26 at 26.32p per kWh. Most heaters won’t run flat out all day if they have a thermostat. Halving the power or the hours roughly halves the cost.

Does the price cap change in January 2027?

Yes, Ofgem reviews the cap every three months, and new rates apply from 1 January 2027. If you are on a fixed tariff, the cap change doesn’t affect your unit rate until your fix ends.

Is it safe to leave an electric heater on overnight?

Electrical Safety First advises never leaving a heater unattended or running while you are asleep. It also recommends plugging heaters straight into a wall socket rather than an extension lead. Switch the heater off before you go to bed. — Warm Home Discount (all checked on 19 October 2026).

Compare home energy deals for your postcode (MoneySuperMarket)

• The Ofgem price cap for a typical dual-fuel home on Direct Debit is £1,723 a year from 1 October to 31 December 2026, when we checked on 19 October 2026

• Compare tariffs from a range of suppliers using your own usage

• Main limitation: not every supplier or tariff appears on every comparison, and the cap limits unit rates, not your total bill

View this deal

How to work out what your heater costs

Every electric heater has a power rating in watts or kilowatts, printed on a label on the back or base and in the instructions. To find the cost of running it, you need just one sum:

Kilowatts × hours used × your unit rate = cost.

A heater rated at 2,000 watts uses 2kW. Run it for one hour and it uses 2kWh, or two units of electricity. At the price cap’s average Direct Debit rate of 26.32p per kWh, that is 2 × 26.32p = 52.6p.

The same sum works for any appliance, which is how our guide to the cost of running an air fryer is worked out. The figures here assume the heater runs at full power the whole time. Most heaters have lower settings and a thermostat, so real costs are usually lower.