One of the important issues of WSN is efficient utilization of limited energy resources in the battery operated sensor node. Clustering provides an efficient method for utilizing the energy efficiently and balancing the energy consumption among the sensor nodes in the networks. Existing clustering algorithms select the Cluster Head with a high residual energy and rotate the Cluster Heads at regular intervals to distribute the energy consumption among the nodes .The responsibility of Cluster Head is to gather the data from the Cluster Members and then forwarding them to the BS. It spends more energy for rotating the Cluster Head at regular interval and gathering the data from the Cluster Members. However, the energy hole problem and imbalance of energy consumptions among the nodes are not avoided in clustering. To mitigate the energy hole problem and utilize the energy efficiently, we propose an Balanced Unequal Clustering Algorithm. The simulation results proof that our algorithm is more efficient and achieves more energy savings than LEACH and HEED.