Who benefits most from a zero standing charge tariff?

These tariffs tend to suit households with low consumption or long periods of very low use, such as single-occupancy homes with minimal usage, people who are away for extended periods, holiday lets between guests, and some small flats with efficient heating. If your usage is low enough, removing the daily standing charge can outweigh the higher unit rate.

When is a zero standing charge tariff likely to be more expensive?

If you use a moderate or high amount of energy, the higher unit price on a zero standing charge tariff can cost more than you save. Homes with electric heating, larger families, high hot-water demand, or high evening/weekend usage often pay less overall on a tariff with a standing charge but a lower unit rate.

How do I work out the break-even point between standing charge vs higher unit rates?

Compare annual totals using your usage in kWh. A simple way: (daily standing charge × 365) ÷ (difference in unit rate). This gives an approximate kWh threshold. If your annual usage is below that threshold, a zero standing charge tariff may be cheaper; above it, a tariff with a standing charge may be better. Always calculate for electricity and gas separately if you have both.

Do zero standing charge tariffs exist for both electricity and gas in the UK?

They can exist for electricity and/or gas, depending on the supplier, region, and meter type. Some offers apply to electricity only, while gas may still include a standing charge (or vice versa). Check the tariff details carefully and compare the combined annual cost for your home.

Are there any downsides or risks with zero standing charge tariffs?

The main trade-off is usually a higher unit rate, so costs can rise quickly if your usage increases. Some tariffs may include specific conditions, such as higher peak rates, minimum usage assumptions, or eligibility restrictions. Also consider customer service, billing accuracy, and whether the tariff is fixed or variable before switching.

Will switching to a zero standing charge tariff affect my smart meter or billing?

In most cases, switching tariffs should not affect your smart meter itself. Your bills will still be based on your meter readings (smart or manual), but the pricing structure changes—standing charge may be £0 while unit rates change. Always confirm how prices apply (including VAT) and whether your meter type is supported.

How can I compare tariffs to make sure I’m choosing the cheapest option?

Use your annual kWh consumption (from recent bills) and compare the full annual cost: (unit rate × kWh) + (standing charge × days). Check both electricity and gas, your payment method, and whether rates are fixed or variable. For tailored help, compare options on EnergyPlus: https://www.energyplus.co.uk/

Are zero standing charge energy tariffs cheaper in the UK?

Q: Are zero standing charge energy tariffs cheaper in the UK?

Sometimes, but not always. Zero standing charge tariffs remove the daily fixed fee, but suppliers usually increase the unit rate (pence per kWh) to recover costs. They can be cheaper for low energy users, empty properties, or households that use very little gas/electricity. For medium-to-high usage homes, a standard tariff with a standing charge may work out cheaper overall. The best way to know is to compare the total annual cost based on your typical usage in kWh.

Sometimes. Zero standing charge tariffs can cut costs for low-usage homes, but they often come with a higher unit rate (p/kWh). Use our whole-of-market comparison to check what’s genuinely cheapest for your postcode and usage.

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Estimates depend on unit rates, your usage (kWh), payment method and your region. Always check tariff details before switching.

Compare zero standing charge tariffs against the whole market

A zero standing charge energy tariff removes the daily fixed fee (the standing charge), but suppliers usually compensate by charging a higher unit rate (p/kWh). Whether it’s cheaper depends on one thing: how much energy you use.

Use the form to compare home energy tariffs for your postcode. We’ll show estimated costs based on current available deals, helping you spot when “no standing charge” genuinely beats a standard tariff.

Tip: If you can find your annual usage in kWh (from a bill, app or smart meter), your comparison will be more accurate. If not, you can still start with an estimate.

What is a zero standing charge tariff?

Most UK household energy tariffs have two main parts:

Standing charge (p/day)

A daily fixed fee that helps cover the cost of connecting your home to the energy network, billing and metering.

Unit rate (p/kWh)

What you pay for each unit of energy you use. This is where “zero standing charge” tariffs often cost more.

Important: A “zero standing charge” deal can still include other charges (for example, different unit rates for electricity and gas, or time-of-use rates). Always compare the estimated annual cost, not just the headline.

When can a zero standing charge tariff be cheaper?

Zero standing charge tariffs are most likely to be cheaper when your energy use is low enough that the standing charge would have made up a large share of your bill. In practice, this often applies to:

Low-usage households

If you’re out a lot, live alone, or heat your home in a way that reduces gas use, removing the daily fee may outweigh a higher unit rate.

Second homes / occasional use

If the property is unoccupied for long periods, a standing charge can be a large cost even when you’re using very little energy.

Homes reducing consumption

If you’ve improved insulation, changed heating patterns or added efficiency measures, it’s worth re-checking whether standing charge-free pricing now suits you.

If you have higher usage (for example, a larger household, frequent home working, or higher heating demand), a zero standing charge tariff can cost more overall because the higher unit rate applies to every kWh.

Quick savings check: the break-even idea (no calculator needed)

To understand whether a zero standing charge tariff could be cheaper, compare: the standing charge you’d avoid vs the extra unit rate you’d pay.

Step 1: Estimate your annual standing charge

Take the standing charge (p/day) and multiply by 365.
Example: 55p/day ˜ £0.55 × 365 ˜ £200.75/year.

Step 2: Compare unit rates

Work out the difference in unit rate (p/kWh) between the zero standing charge tariff and a standard tariff.
Example: If the unit rate is 8p/kWh higher, the extra cost depends on your kWh usage.

Rule of thumb: Zero standing charge tends to win only if your usage is low enough that the savings from removing the standing charge beat the higher unit rate. The easiest way to confirm is to compare estimated annual cost for your postcode.

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The trade-offs to watch for (so “cheaper” stays cheaper)

Higher unit rates

Removing the standing charge often means the supplier recovers costs via p/kWh. If your usage increases, the tariff can stop being competitive.

Different rates by region

Standing charges and unit rates vary across UK regions and networks. A deal that looks good in one postcode can be poor value elsewhere.

Tariff conditions

Check exit fees, fixed-term length, payment method, and whether prices are fixed or variable. “No standing charge” alone doesn’t guarantee savings.

If you’re on a prepayment meter or have a smart meter with time-of-use pricing, comparisons can look different. Use your real kWh usage where possible.

How to compare costs properly (with examples)

To decide if a zero standing charge energy tariff is cheaper in the UK, compare the full expected cost: (unit rate × usage) + standing charge. Below are simple examples to illustrate the principle.

Example	Annual usage	Standard tariff	Zero standing charge tariff	Which can be cheaper?
Low usage home	Low kWh/year	Lower unit rate + daily standing charge	Higher unit rate + £0 standing charge	Often zero standing charge
Medium usage home	Typical kWh/year	Balanced overall cost	Depends heavily on unit rate premium	Could be either
High usage home	High kWh/year	Standing charge becomes a smaller % of bill	Higher unit rate applies to lots of kWh	Often standard tariff

A simple break-even example (why usage matters)

Suppose a standard tariff has a standing charge of £200/year (roughly 55p/day). A zero standing charge tariff removes that £200, but its unit rate is 8p/kWh higher.

Break-even usage ˜ £200 ÷ £0.08 = 2,500 kWh/year.
If you use less than that, zero standing charge could be cheaper. If you use more, the higher unit rate can outweigh the standing charge saving.

Your numbers will differ by region, payment type and supplier pricing. That’s why the quickest route is a personalised comparison for your postcode.

Common mistakes when choosing “no standing charge” energy

Comparing only standing charge

A £0 standing charge looks attractive, but the unit rate can be the difference between saving money and paying more.

Using the wrong usage assumptions

If you’ve recently moved, changed heating, or started working from home, last year’s kWh may not match today’s reality.

Forgetting gas and electricity are separate

You might find zero standing charge works for one fuel but not the other. Always check the combined annual cost.

Ignoring tariff type (fixed vs variable)

Fixed deals can give predictability; variable prices can move. Make sure you compare like for like and check key terms.

If you’re unsure what your usage is, start the comparison anyway. We’ll help you narrow down the best options and you can refine with exact kWh from a bill later.

FAQs: zero standing charge tariffs in the UK

Are zero standing charge tariffs always cheaper?

No. They can be cheaper for low usage households, but many come with a higher unit rate. The only reliable way to confirm is to compare estimated annual cost using your usage and postcode.

Why do standing charges exist?

Standing charges help cover fixed costs such as network maintenance, metering, and billing. A zero standing charge tariff typically shifts those costs into the unit rate instead.

Do zero standing charge deals exist for both gas and electricity?

Some suppliers offer them for one fuel, others for both, and availability can change. Comparing for your postcode will show what’s currently available and the likely total annual cost.

Will a zero standing charge tariff affect my smart meter?

The tariff structure doesn’t stop a smart meter from working. However, some smart tariffs use time-of-use rates, which may change the best option for your household.

Is switching energy supplier complicated?

For most homes, switching is straightforward and you won’t be left without supply. You’ll typically keep the same meter, and your new supplier takes over the process.

What information do I need to get an accurate quote?

Your postcode and (ideally) your annual electricity and/or gas usage in kWh. If you don’t have exact kWh, you can start with an estimate and refine it later.

Want a personalised answer for your home? Compare tariffs here.

Why homeowners use EnergyPlus.co.uk

Whole-of-market comparisons

Compare available home energy tariffs in one place, including options that may not be obvious from headline pricing.

Built for real-world costs

We focus on estimated annual cost so you can see whether £0 standing charge is truly cheaper for your usage.

Clear switching support

Simple next steps, with guidance to help you avoid common traps like exit fees or unsuitable tariff types.

Customer feedback

“The comparison made it obvious that a no standing charge deal wasn’t right for our usage. We picked a cheaper standard tariff instead.”

UK homeowner, online comparison user

What matters most

“We use very little energy, so the standing charge was a big part of our bill. Comparing by postcode helped us find a better fit.”

UK homeowner, switched after comparing

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Updated on 3 Feb 2026