What is a standing charge on an energy tariff?

A standing charge is the fixed daily cost you pay to be connected to the gas or electricity network—regardless of how much energy you use. It typically covers things like network costs, metering and supplier operating costs.

Are there energy tariffs with a cheap (or zero) standing charge in the UK?

Some UK suppliers and tariffs may offer lower standing charges than average, and in some cases promotional or specialist tariffs can reduce the standing charge further. Availability varies by region, meter type and payment method—so it’s important to compare quotes for your postcode and usage.

Is a cheap standing charge always the cheapest option overall?

Not always. Tariffs with a lower standing charge can have a higher unit rate (the price per kWh). The cheapest overall option depends on your annual usage—low users often benefit most from a lower standing charge, while higher users may save more with a lower unit rate even if the standing charge is higher.

Who benefits most from low standing charge energy tariffs?

Low standing charge tariffs can suit households with lower consumption—such as small flats, single occupants, people who are away from home often, or homes using alternative heating. If your energy use is higher, the unit rate can matter more than the standing charge.

How can I find the cheapest standing charge for my area?

Standing charges vary by region and meter type. The quickest way to find the cheapest standing charge available to you is to compare tariffs using your postcode and approximate annual usage, then sort results by total yearly cost and review both standing charge and unit rate before switching.

Do standing charges differ between electricity and gas?

Yes. Electricity and gas each have their own standing charge and unit rate. You may also see different charges depending on whether you have a single-rate meter, Economy 7 (two-rate) meter, or a smart meter setup.

Can I reduce my standing charge by switching supplier?

Potentially, yes. Different suppliers and tariffs can have different standing charges for the same region. Comparing tariffs and switching to a deal with a lower standing charge (and competitive unit rates) can reduce your overall bill—especially if your usage is low.

What details do I need to compare cheap standing charge energy tariffs?

To get accurate comparisons, you typically need your postcode, fuel type (electricity/gas), payment method and an estimate of your annual kWh usage (or a recent bill). This ensures quotes reflect the standing charge and unit rates available for your area.

Can I switch to a low standing charge tariff if I have a smart meter?

In most cases, yes. Many tariffs are compatible with smart meters, but availability depends on the supplier, your meter configuration and your region. When comparing, check tariff eligibility and any meter requirements before you switch.

Energy tariffs with a cheap standing charge (UK)

Compare whole-of-market tariffs and see whether a lower standing charge would actually reduce your total bill, based on how much gas and electricity you use.

See when a low standing charge helps (and when it doesn’t)
Includes UK-specific caveats: region, meter type, payment method and tariff eligibility
Realistic worked examples with transparent assumptions

Get your energy quote How to decide (standing charge vs unit rate)

Estimates only. Standing charges and unit rates vary by region, meter type and payment method. Always check tariff details and any exit fees before switching.

Fast answer: a cheap standing charge can help, but only if the unit rate isn’t higher

In the UK, the standing charge is a fixed daily cost you pay even if you use no energy. A tariff with a lower standing charge can reduce your bill if you’re a low user (or your property is empty for periods). But suppliers often offset a lower standing charge with a higher unit rate (p/kWh), so some households pay more overall.

Best for

Low electricity use (e.g., small flat, single occupant)
Homes empty for weeks (second homes, long travel)
People who can keep usage low and predictable

Often not worth it for

High users (electric heating, large households)
Customers who need a specific meter type/tariff (e.g., some smart/complex setups)
Anyone who’d pay a higher unit rate that outweighs the standing charge saving

What to check first

Your region (standing charge varies by distribution area)
Payment method (Direct Debit vs prepayment can differ)
Meter type (credit, prepay, smart, Economy 7)

Quick rule of thumb: work out the break-even point. If a tariff saves you X p/day on standing charge but costs Y p/kWh more per unit, then it only helps if you use less than (X ÷ Y) kWh/day. We show examples further down.

Compare tariffs by total cost (not just standing charge)

A “cheap standing charge” tariff is only a good deal if the overall expected annual cost is competitive for your usage. Use our quote form to compare whole-of-market options (where available) and see rates tailored to your region and meter setup.

What we’ll use to tailor results

Postcode: Sets your electricity distribution region and gas charging area (key for standing charges).
Contact details: So we can send your quote and help you complete a switch if you choose to.

Prefer to read first? Jump to how to decide between low standing charge and low unit rate.

Get your standing charge comparison

How to decide: cheap standing charge vs cheap unit rate

Step 1: Understand the two parts of your bill

Standing charge (p/day): fixed daily amount for maintaining your supply connection and related costs.
Unit rate (p/kWh): what you pay for each kWh you use.

A tariff with a very low standing charge can look attractive, but your total cost depends on both parts.

Step 2: Do a quick break-even check

If Tariff B saves you X p/day on standing charge but costs Y p/kWh more in the unit rate, then:

Break-even usage (kWh/day) ˜ X ÷ Y

If you use less than that each day on average, the low standing charge option is more likely to win. If you use more, the cheaper unit rate often wins.

Step 3: Check UK eligibility and “gotchas”

Region: standing charges vary by network area; a “low” standing charge in one area may be average elsewhere.
Payment method: prices can differ for Direct Debit, cash/cheque, and prepayment meters.
Meter type: Economy 7/10, smart meters, and prepay can limit which tariffs are available.
Single-fuel vs dual-fuel: some deals look better as dual fuel; single-fuel may price differently.

Scenario 1 (realistic): low user in a 1-bed flat

Assumptions (illustrative): electricity-only comparison; prices shown are examples, not live market rates. Usage 5 kWh/day (˜ 1,825 kWh/year).

Tariff	Standing charge	Unit rate	Estimated annual standing charge	Estimated annual unit cost
A: Standard standing charge	55p/day	24.0p/kWh	£200.75	£438.00
B: Lower standing charge	30p/day	27.0p/kWh	£109.50	£492.75

Estimated totals: Tariff A ˜ £638.75, Tariff B ˜ £602.25. In this low-usage example, the lower standing charge wins despite a higher unit rate.

Check the break-even: standing charge saving = 25p/day. Unit rate increase = 3p/kWh. Break-even ˜ 25 ÷ 3 = 8.3 kWh/day. Using 5 kWh/day is below that.

Scenario 2 (realistic): larger household, higher usage

Assumptions (illustrative): electricity-only comparison; usage 15 kWh/day (˜ 5,475 kWh/year). Same example tariff rates as above for clarity.

Tariff	Standing charge	Unit rate	Estimated annual standing charge	Estimated annual unit cost
A: Standard standing charge	55p/day	24.0p/kWh	£200.75	£1,314.00
B: Lower standing charge	30p/day	27.0p/kWh	£109.50	£1,478.25

Estimated totals: Tariff A ˜ £1,514.75, Tariff B ˜ £1,587.75. Here, the higher unit rate outweighs the standing charge saving.

Because 15 kWh/day is above the break-even of ~8.3 kWh/day, the cheaper unit rate is more likely to win.

Important: these are simplified electricity-only examples to show the trade-off clearly. Your real comparison should include your actual meter type (single-rate vs Economy 7), payment method, regional charges and (if relevant) gas too.

Comparison table: what “cheap standing charge” usually means in practice

There’s no single “best” standing charge across the UK. Rates depend on your location, fuel (gas/electric), meter type and payment method. Use this table to decide which tariff style to prioritise when you compare.

Tariff style	Standing charge	Unit rate	Who it tends to suit	Watch-outs
Low standing charge	Lower than typical for your region	Often higher	Low users; homes empty for periods	Can cost more for average/high use; check exit fees and eligibility
Low unit rate	Often higher	Lower than typical	Higher users; larger households	If you hardly use energy, standing charge can dominate your bill
Fixed tariff	Fixed for the term	Fixed for the term	People who value price certainty	May include exit fees; might miss out if prices fall
Variable tariff	Can change	Can change	Flexibility; no long commitment (often)	Prices can rise; compare total expected cost regularly

Decision checklist (quick)

Do you know your approximate annual kWh for electricity (and gas if applicable)?
Are you on a single-rate meter, Economy 7/10, smart or prepay?
Do you want Direct Debit, or do you need pay-as-you-go?
Would an exit fee be a problem if you need to move or switch again?
Are you comparing total estimated annual cost, not just one rate?

If you’re not sure of your usage

You can still compare, but your results will be less precise. A good next step is to check:

Your latest bill/online account (annual kWh is often shown)
Your in-home display/app if you have a smart meter
Citizens Advice guidance on understanding bills and switching

Get a quote and we’ll help you sense-check whether low standing charge tariffs make sense for your situation.

Costs, exclusions and common pitfalls (UK)

Standing charge comparisons can be confusing because the “best” option depends on details that vary across the UK. These are the most common reasons a low standing charge deal doesn’t work out as expected.

1) The unit rate is higher (and wipes out the saving)

This is the big one. Always compare the estimated annual cost using your usage. If you don’t know your usage, use a cautious estimate and revisit once you have better numbers.

2) Region makes a “cheap” standing charge look different

Electricity standing charges and unit rates differ by distribution region. Gas charges can vary too. A tariff marketed nationally may not be equally competitive everywhere.

3) Payment method and meter type exclusions

Some tariffs are only available to Direct Debit customers, or exclude prepayment meters, or don’t support certain multi-rate setups (e.g., Economy 7). Check eligibility before you start a switch.

4) Exit fees on fixed tariffs

A fixed tariff may have an exit fee if you leave early (for example, if you move home or want to switch again). That fee can outweigh any benefit from a lower standing charge.

What if you’re on prepay and want lower standing charges?

Prepayment tariffs can be priced differently, and availability can be more limited. If you’re considering changing payment method, check suitability first (budgeting, credit checks where applicable, and whether your meter needs to be exchanged). If you’re struggling to pay, Citizens Advice has guidance on support options.

FAQs: cheap standing charge energy tariffs (UK)

What is a standing charge?

A standing charge is a daily fixed amount you pay for your gas and/or electricity supply. You pay it even if you use no energy.

Why do standing charges vary by postcode?

Electricity prices vary by distribution network region, and standing charges can differ across those regions. Suppliers build regional network costs into tariffs, so your postcode affects what you pay.

Can I get a zero standing charge tariff in the UK?

Zero standing charge tariffs are uncommon. Where offered, the unit rate is often higher to compensate. Compare the estimated annual cost using your usage before choosing.

Is a low standing charge always best for low users?

Often, but not always. It depends how much higher the unit rate is. Use the break-even method (standing charge saving ÷ unit rate increase) to sense-check quickly.

Do I pay two standing charges for dual fuel?

Usually yes: one for electricity and one for gas (each with its own daily rate). When comparing “cheap standing charge” deals, check both fuels, not just one.

Will switching affect my supply or cause an outage?

Switching supplier doesn’t normally interrupt your energy supply. Your gas and electricity still come through the same pipes and wires. Timelines can vary, and you should keep paying your current supplier until the switch completes.

What if I have Economy 7 or a smart meter?

Economy 7 (and other multi-rate meters) has separate unit rates for day/night and can change the best option. Smart meters should work with most tariffs, but availability varies by supplier and meter setup. Compare using your meter type for accuracy.

Are standing charges regulated in the UK?

Ofgem sets rules for the energy market and the price cap limits what suppliers can charge on default tariffs (including elements that affect standing charges), but standing charges and unit rates can still vary within allowed structures and between tariff types.

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We’ll show options where a lower standing charge helps your expected annual cost, and flag any key eligibility restrictions.

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Trust, methodology and sources

Editorial details

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

How we assess “cheap standing charge” tariffs

We focus on what matters to households: estimated total annual cost, not just the headline standing charge.

We compare tariffs available for a given postcode/region, meter type and payment method (where those details are provided).
We consider standing charge and unit rate together, because either can dominate depending on usage.
We flag common restrictions that can affect real-world eligibility (e.g., prepay compatibility, Economy 7 pricing, exit fees on fixed deals).

Assumptions and limitations (important)

Examples on this page use simplified illustrative rates to show the trade-off; they are not live quotes.
Actual pricing varies by region, tariff, supplier, meter type and payment method.
Your total cost depends on consumption patterns (including day/night split for multi-rate meters).
Some tariffs have additional terms (e.g., bundles, rewards, service add-ons) that may not suit everyone.

Sources (UK)

Ofgem (UK energy regulator) — market rules, price cap and consumer guidance
Citizens Advice: energy — switching help, billing and support if you’re struggling
GOV.UK — official government guidance and consumer information

We link to external sources for transparency. Supplier prices and terms can change, so always confirm details on the tariff information before you switch.

Find a tariff that’s cheap overall — not just on standing charge

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Updated on 24 Feb 2026