What is a standing charge and why does it matter?

A standing charge is a fixed daily fee you pay for your energy supply, regardless of how much gas or electricity you use. It helps cover costs like maintaining the network, metering and billing. If you use less energy (for example, a small household, flat, or second home), a lower standing charge can make a noticeable difference to your total bill.

Are tariffs with a discounted standing charge always cheaper?

Not always. Some tariffs reduce the standing charge but increase the unit rate (the price per kWh). Whether you save depends on your annual usage. A discounted standing charge tends to suit low to medium users; higher users may do better with a lower unit rate. Compare your total annual cost rather than the standing charge alone.

Who benefits most from an energy tariff with a lower standing charge?

Typically, people with lower consumption benefit most—such as single occupants, smaller homes, households that are out at work most days, or properties used occasionally. If you have low kWh usage, reducing the fixed daily cost can reduce your bill even if the unit rate is slightly higher.

How can I tell if a discounted standing charge tariff is right for my home?

Use your past bills (or smart meter/app data) to estimate annual kWh usage for gas and electricity. Then compare tariffs by total annual cost: (unit rate × usage) + (standing charge × 365). If you want tailored help, compare options at https://www.energyplus.co.uk/ using your postcode and recent usage.

Can my standing charge change during the contract?

On fixed tariffs, rates are usually fixed for the contract term, but some elements can still change in specific circumstances (for example, if you move home or your meter type changes). On variable tariffs, both unit rates and standing charges can change. Always check the tariff details and contract terms before switching.

Do prepayment meters have different standing charges?

They can. Standing charges and unit rates may vary by payment method, meter type (credit, prepayment, smart) and region. If you have a prepayment meter, compare using tariffs specifically available for your meter type and location to get an accurate total cost.

Is it possible to have zero standing charge in the UK?

Some suppliers have offered zero or very low standing charge tariffs, but availability and pricing structures vary. Often, a zero standing charge is offset by a higher unit rate, so it can be better for very low usage households but not for everyone. Compare using total annual cost to see if it works for you.

Will switching to a discounted standing charge tariff affect my service or supply?

No—your gas and electricity are delivered through the same national networks, and your supply should not be interrupted during a normal switch. The difference is the price you pay and the customer service you receive.

How do I switch energy tariffs and how long does it take?

You can usually switch by choosing a tariff, providing your address, meter details and payment preferences, and confirming the switch. The process typically takes a few working days. To compare and start a switch, visit https://www.energyplus.co.uk/.

Energy tariffs with a discounted standing charge (UK guide)

Looking for a lower daily standing charge? Some UK tariffs reduce it by shifting more cost into the unit rate (p/kWh) or by offering a time-limited discount. This guide explains what’s genuinely possible, how to compare like-for-like, and how to check if you’ll actually pay less.

Learn what “discounted standing charge” really means (and the trade-offs)
Use a simple break-even check based on your usage and meter type
Compare whole-of-market options with a trust-led quote in minutes

Get your standing charge check How to compare tariffs safely

Figures and examples are illustrative and based on typical UK tariff structures. Availability and prices vary by region, meter type, payment method and supplier terms.

Fast answer: can you get a discounted standing charge in the UK?

Sometimes, but it’s rarely a “free” saving. A tariff marketed with a lower standing charge usually has a higher unit rate (p/kWh) or the discount is conditional (for example, time-limited, bundled, or available only for certain payment methods, meters or regions). Whether it reduces your annual bill depends mainly on your usage and meter/tariff type.

Quick rule of thumb: A lower standing charge tends to suit low-usage homes (e.g., smaller flats, long periods away). Higher-usage homes can end up paying more if the unit rate is meaningfully higher.

Key takeaways (UK-specific)

Standing charges vary by region (your Distribution Network Operator area), fuel (gas vs electricity), and tariff.
Payment method matters: some deals are only for Direct Debit; prepayment tariffs are different again.
Smart meters can open up options (e.g., time-of-use tariffs) but they don’t automatically mean a lower standing charge.
Check the full annual cost, not just the daily charge: standing charge + unit rate × usage.
Watch for exit fees on fixed tariffs and any eligibility conditions or “discount ends after X months”.

Check if a lower standing charge will actually cut your bill

Tell us a few details and we’ll compare whole-of-market home energy tariffs available for your postcode and meter type. We’ll surface options where the standing charge is lower than typical in your region, and show the estimated annual cost so you can make a fair comparison.

Tip: If you have your latest bill handy, use your annual kWh (electricity and/or gas). If not, a rough estimate still works for a first comparison.

How to compare “discounted standing charge” tariffs safely

Confirm your setup: credit meter vs prepayment, smart meter, Economy 7 (two-rate), or single-rate.
Compare on the same usage: use your annual kWh. If you’re moving in, use a realistic estimate.
Check the unit rate trade-off: a lower standing charge often comes with a higher p/kWh.
Look for conditions: time-limited discounts, online-only requirements, bundled products, or Direct Debit-only pricing.
Scan for exit fees and end dates: especially on fixed deals.

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Comparing low standing charge tariffs: what you’re really choosing

In the UK, tariffs can be structured in a few common ways. The labels vary by supplier, but the underlying trade-offs are consistent.

Tariff type (typical wording)	Standing charge	Unit rate	Who it can suit	Main watch-outs
Standard variable (SVT)	Often “typical” for your region	Moves with price changes	Those who want flexibility / no exit fee	Can rise; standing charge may not be “discounted”
Fixed (price guaranteed for a term)	May be lower/higher than SVT	Locked for the term	Budgeting certainty	Exit fees; check what happens at end of fix
Low standing charge / “rebalanced”	Lower than comparable tariffs	Often higher to compensate	Low-usage homes	Can cost more for medium/high usage
Time-of-use (e.g., EV / off-peak)	Not necessarily lower	Varies by time bands	Those who can shift usage off-peak	Needs compatible smart meter; peak rates can be higher
Prepayment (PAYG)	Structured differently; may vary	Often higher than credit/DD	Payment control, budgeting	Fewer deals; check support schemes and debt arrangements

Decision checklist: who a discounted standing charge tends to suit

Likely a good fit

You use relatively little energy (small home, efficient heating, away often).
You’re mainly trying to reduce fixed daily costs (standing charge) rather than total kWh usage.
You’re happy to check the unit rate carefully and compare total annual cost.
You’re not locked into an expensive fix with exit fees (or you’ve checked them).

Often not a good fit

You have higher usage (larger household, electric heating, frequent home working).
Your tariff discount is time-limited and then reverts to a higher standing charge.
You’re on Economy 7 and most of your use is daytime (you could pay more).
You need maximum flexibility and want to avoid any exit fees.

Remember: standing charges aren’t the same everywhere. Two households on the “same” tariff in different regions can have different standing charges and unit rates.

Costs, exclusions and common pitfalls (what to check before you switch)

A “discounted standing charge” can be genuine, but only when you understand the conditions. Use the checks below to avoid the most common surprises.

1) Higher unit rate can wipe out the “discount”

If the unit rate is higher by even a few pence, medium or high usage can cost more overall. Always compare the estimated annual cost using your usage.

2) Region, meter and payment method restrictions

Some tariffs are only available in certain regions, or only for Direct Debit / online accounts, or only for smart meters. Economy 7 and prepayment options are often different.

3) Introductory discounts and reversion

A low standing charge might be promotional for a set period. Check what happens after the offer ends and what tariff you’ll move to.

4) Exit fees on fixed deals

If you’re currently on a fixed tariff, you may pay a fee per fuel to leave early. Factor this into any estimated savings.

5) Economy 7 / two-rate tariffs

You may have separate day and night rates. A lower standing charge is only one part of the picture—your day/night split is usually the bigger driver.

6) “Zero standing charge” claims

Where offered, “zero” often means the cost is recovered elsewhere (typically through a higher unit rate or membership-style pricing). Check the full terms and total cost.

Two realistic scenarios (with numbers)

These examples show how a lower standing charge can help or hurt depending on usage. They are illustrative and use rounded numbers to make the maths clear.

Scenario A: low-usage flat (electricity only)

Assumed annual usage: 1,800 kWh electricity
Tariff 1 (typical structure): Standing charge: 60p/day; Unit rate: 24p/kWh
Tariff 2 (discounted standing charge): Standing charge: 35p/day; Unit rate: 30p/kWh

Estimated annual cost:
Tariff 1: (0.60×365)=£219 + (0.24×1,800)=£432 ? £651
Tariff 2: (0.35×365)=£128 + (0.30×1,800)=£540 ? £668
Result: lower standing charge, but higher unit rate makes it slightly more expensive in this example.

Scenario B: very low-usage home (frequently away)

Assumed annual usage: 900 kWh electricity
Tariff 1 (typical structure): Standing charge: 60p/day; Unit rate: 24p/kWh
Tariff 2 (discounted standing charge): Standing charge: 35p/day; Unit rate: 30p/kWh

Estimated annual cost:
Tariff 1: £219 + (0.24×900)=£216 ? £435
Tariff 2: £128 + (0.30×900)=£270 ? £398
Result: in very low usage, the lower standing charge can outweigh the higher unit rate.

Make it personal: your break-even point depends on the exact difference in standing charge and unit rate. If you share your postcode and (rough) annual kWh, we can estimate this using tariffs available to you.

FAQs: discounted standing charge energy tariffs (UK)

What is the standing charge and why does it vary?

The standing charge is a daily fixed amount covering things like maintaining the network, metering and operating costs. It varies by region (network area), fuel type, payment method and tariff structure.

Are there genuinely “no standing charge” tariffs?

They’re uncommon and may come with higher unit rates or other fees. If you see one, compare the estimated annual cost at your usage and read the tariff information carefully before switching.

Will a discounted standing charge tariff always be cheaper for low users?

Not always. It depends on how much higher the unit rate is. Very low users may benefit, but “low” is relative—use your annual kWh to check where the break-even point sits.

Does having a smart meter mean I can get a lower standing charge?

A smart meter can make you eligible for more tariffs (especially time-of-use), but it doesn’t automatically reduce the standing charge. The overall cost still depends on the tariff’s unit rates and your consumption pattern.

Do standing charges differ for prepayment (PAYG)?

They can. Prepayment tariffs are priced differently and there may be fewer deals. If you’re on PAYG, it’s still worth comparing—but make sure you compare PAYG-to-PAYG (or check whether switching meter/payment method is possible for you).

Can my landlord stop me switching energy supplier?

If you pay the energy bill, you can usually choose the supplier. Exceptions can apply in some managed buildings or where energy is included in rent. If you’re unsure, check your tenancy agreement and ask your landlord/agent.

Will switching affect my Warm Home Discount or other support?

Eligibility rules depend on the scheme and supplier participation. If you receive support, check how it works before switching and keep records. For independent guidance, Citizens Advice can help you understand your options.

What details do I need to compare properly?

Your postcode, fuel(s), meter type (single-rate/Economy 7/smart/prepayment), payment method, and ideally your annual usage in kWh. If you don’t know your kWh, a recent bill can help.

How long does a switch usually take in the UK?

Switching timeframes vary by supplier and circumstances (for example, debt on the meter or meter exchange needs). If your switch is straightforward, it’s often completed within a few weeks, but always check the supplier’s stated process and timelines.

Trust, transparency and how we assess discounted standing charges

Editorial details

Written by: EnergyPlus Editorial Team
Reviewed by: Energy Specialist
Last updated: February 2026

Our approach (what we mean by “discounted standing charge”)

We treat “discounted standing charge” as: a tariff whose standing charge for a given fuel is lower than other comparable tariffs available to the same household (same region, meter type, payment method), and where we also show the estimated annual cost so users can judge the unit-rate trade-off.

We prioritise whole-bill clarity over headline marketing: standing charge is one part of the cost, so we encourage comparing on annual cost using realistic kWh.

Assumptions used in examples

365 days of standing charge per year.
Single-rate electricity in the scenarios (no Economy 7 split).
Prices shown are illustrative and rounded to keep the maths readable.

Limitations (important)

Actual tariffs differ by region, meter type (smart/Economy 7/prepayment), and payment method.
Supplier terms can change; fixed deals may include exit fees.
For Economy 7/time-of-use, your day/night (or peak/off-peak) usage split can dominate the outcome.

Sources (UK)

Ofgem (UK energy regulator) — guidance on energy prices, switching and consumer protections.
Citizens Advice: Energy — independent support on bills, tariffs and switching.
GOV.UK: Energy information — government information on energy-related schemes and guidance.

Ready to see if a lower standing charge suits your home?

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Updated on 27 Feb 2026