Are zero standing charge tariffs actually cheaper?

They can be cheaper for low-usage households, empty properties, or people away for long periods. For medium-to-high usage homes, a higher unit rate can outweigh the benefit of paying no daily charge. The best way to judge is to compare quotes using your typical kWh consumption rather than focusing on the standing charge alone.

Why do most energy tariffs include a standing charge?

Standing charges help cover fixed costs such as maintaining local networks, metering and billing, and other system costs that apply regardless of how much energy you use. With a zero standing charge tariff, some of these costs are typically recovered through a higher unit rate.

Do zero standing charge tariffs have higher unit rates?

Often, yes. Many zero standing charge tariffs offset the removed daily fee by increasing the price per kWh. To avoid paying more overall, compare the total estimated annual cost for your real consumption and check whether rates vary by region or payment method.

Can I switch if I’m in a fixed-term energy contract?

You can usually switch, but you may pay an exit fee if you leave a fixed tariff early. Check your current plan terms and compare any exit fee against the savings you expect from switching. If you’re near the end of your fixed term, switching may be cheaper.

Is a zero standing charge tariff suitable for a smart meter or prepayment meter?

Availability depends on the supplier and your setup. Some tariffs may be limited by meter type (credit, smart, or prepayment). If you’re unsure, use a supplier quote or contact the provider to confirm eligibility before starting a switch.

Could I end up paying more with a zero standing charge tariff?

Yes. If the unit rate is significantly higher, higher consumption can increase your total bill beyond what you’d pay on a tariff with a standing charge. Always compare the projected annual cost using your typical kWh usage, and review any additional fees or conditions.

How do I compare tariffs properly (for best savings)?

Compare tariffs using: (1) your annual kWh usage (electricity and gas), (2) the unit rate, (3) the standing charge (if any), and (4) the tariff type (fixed or variable). The most accurate comparison is the total estimated annual cost, not a single headline rate. You can view tariffs and switch at https://www.energyplus.co.uk/.

How long does it take to switch energy supplier in the UK?

Switching is typically completed within a few working days, although timescales can vary by supplier and circumstances (for example, meter or account issues). Your energy supply won’t be interrupted during the switch.

What should I check before switching to a zero standing charge tariff?

Before switching, check your annual usage, the unit rate, any exit fees, payment method requirements, eligibility by region/meter type, and whether prices are fixed or variable. If you want to review available options and switch online, start at https://www.energyplus.co.uk/.

Can I switch to a zero standing charge tariff in the UK?

Q: Can I switch to a zero standing charge tariff in the UK?

Yes—if a supplier offers one and it’s available for your meter type and region. Zero standing charge tariffs are less common and may come with a higher unit rate, so it’s important to compare the total annual cost based on your actual usage before switching.

A clear, UK-specific guide to what “zero standing charge” really means, who it can suit, and how to compare fairly (with realistic examples and pitfalls to avoid).

Understand the trade-off: no daily fee usually means higher unit rates
Check eligibility: meter type, region, payment method and supplier availability
Use a simple break-even calculation before you switch

Get your energy quote How zero standing charge works

Estimates shown are illustrative. Tariffs, eligibility and prices vary by region, meter type and payment method.

Fast answer: yes, sometimes — but it’s not always cheaper

You can switch to a zero standing charge tariff in the UK if a supplier offers one for your region, meter and payment method. These tariffs remove the daily fixed fee, but they typically make up the difference with higher unit rates (p/kWh). That means they often suit very low users (for example, an empty property, a single occupant who’s out most days, or a home with a lot of energy included elsewhere), and can be poor value for average to high usage.

Important: “Zero standing charge” should mean £0.00/day standing charge for the fuel(s) you’re comparing. Some tariffs may advertise low or discounted standing charges, or apply different rates by payment method, region, or meter type. Always check the Tariff Information Label / key facts before switching.

Key takeaways

Not everyone can get one: availability can be limited by supplier, region, and meter set-up.
Do a break-even check: compare standing charge saved vs extra unit rate paid.
Consider seasonality: low summer use can look great; winter heating can change the maths.
Watch for repayment plans: if you’re paying back debt, a higher unit rate can cost more overall.

Quick self-check (30 seconds)

Do you use very little energy?: If yes, zero standing charge may help.
Do you rely on electricity for heating (e.g., storage heaters)?: If yes, higher unit rates can outweigh the saved standing charge.
Do you have a prepayment meter?: You may have fewer options and different pricing. Compare carefully.

How zero standing charge tariffs work (in plain English)

Most UK energy tariffs charge:

Standing charge (p/day): a fixed daily amount that helps cover network costs, metering, and account administration.
Unit rate (p/kWh): what you pay for the energy you use.

A zero standing charge tariff sets the standing charge to £0/day. But because suppliers still face those underlying costs, the unit rate is typically higher. Whether it’s good value depends on how much energy you use.

Rule of thumb: if you use more energy than the tariff’s break-even point, a standard tariff with a standing charge often becomes cheaper overall. The only reliable approach is to compare costs using your annual kWh usage (or a good estimate).

Break-even calculation (simple)

To estimate when zero standing charge becomes better or worse, compare:

Standing charge saved per year = (current standing charge per day) × 365
Extra paid on unit rate = (zero-SC unit rate - current unit rate) × annual kWh

If the standing charge saved is bigger than the extra unit-rate cost, the zero standing charge tariff could be cheaper (before any other fees/discounts).

Compare available tariffs for your home

We’ll check the whole market we can access for your postcode, meter type and payment method, including whether any £0 standing charge options are available. No obligation.

Tip: Have a recent bill handy. If you know your annual kWh for gas and electricity, your comparison will be more accurate.

What can affect whether you can switch (UK-specific)

Your region

Standing charges vary by local distribution network area. Suppliers may offer £0 standing charge in some regions but not others.

Meter type

Smart meters, traditional credit meters, Economy 7/10, and prepayment meters can have different tariff availability.

Payment method

Direct Debit often has the widest choice. Options for prepayment (PAYG) can be more limited and priced differently.

Compare: zero standing charge vs standard tariff (what to check)

A fair comparison uses your estimated annual usage and includes the things that can change your real bill: unit rates, standing charges (for each fuel), any discounts, and any exit fees if you’re currently fixed.

What you’re comparing	Standard tariff (typical structure)	Zero standing charge tariff (typical structure)	Why it matters
Standing charge	A daily charge (electricity and/or gas)	£0/day for the fuel(s) on offer	Big win for low usage or second homes that still pay daily fees.
Unit rate (p/kWh)	Often lower	Often higher	Can outweigh standing charge savings if your usage is moderate/high.
Meter type	Credit/Direct Debit, smart, single rate, E7	May be restricted (e.g., not for all prepay/E7 setups)	Some tariffs simply won’t be offered for certain meters.
Exit fees	Can apply on fixed deals	Can apply too	Switching early may cost more than you save in the short term.
Billing/payment	Direct Debit often cheapest	Availability varies by payment method	Prepayment and variable payment methods can change pricing.

Decision checklist: who it suits

Very low energy use for long periods (e.g., small flat, single occupant, lots of time away)
Empty property between tenants (where you still want supply live)
Second home with minimal winter use (compare carefully if it’s heated)
You can track usage and are happy to review after a season

Who it often doesn’t suit

Medium/high usage households (families, home working, lots of cooking/electric showers)
Electric heating or high night-rate demand (unless the tariff’s rates still work for you)
Anyone in fuel debt repayment where higher unit rates increase overall cost
People who prefer predictable bills and don’t want to review pricing regularly

Practical tip: If you’re not sure of your annual kWh, use your last 6–12 months of bills. If you’ve recently moved in, a comparison site estimate is a starting point, but it won’t be as accurate as your own readings.

Costs, exclusions and common pitfalls (UK)

Before switching, check the details that most often cause surprises. These aren’t reasons to avoid zero standing charge tariffs — they’re reasons to compare properly.

Pitfall 1: Only one fuel is £0 standing charge

Some deals may offer zero standing charge for electricity only (or rarely gas only). If you’re dual fuel, compare the combined annual cost, not the headline.

Pitfall 2: Higher unit rates in winter hit harder than you expect

Because heating season drives most annual usage, a tariff that looks good on low summer use can be expensive across the full year.

Pitfall 3: Exit fees and timing

If you’re on a fixed tariff, you may pay an exit fee for leaving early. Work out whether the expected annual saving (if any) covers that cost.

Pitfall 4: Prepayment and meter restrictions

Prepayment meters can have different pricing and fewer tariff options. Economy 7/10 and complex meter configurations may reduce availability.

Two realistic scenarios (with numbers)

These examples are illustrative to show the maths. Prices vary by region and supplier. We assume a single-rate electricity setup and no additional discounts.

Scenario A: low-use electricity-only flat

Annual electricity use: 1,200 kWh
Standard tariff: 55p/day standing charge, 24p/kWh unit rate
Zero-SC tariff: £0/day standing charge, 40p/kWh unit rate

Estimated annual cost

Standard: (0.55×365)=£200.75 standing + (0.24×1,200)=£288 usage ? £488.75
Zero-SC: £0 standing + (0.40×1,200)=£480 usage ? £480

Result: zero-SC is ~£9/year cheaper in this low-use example. A small change in unit rate could flip the result.

Scenario B: typical dual-fuel household

Annual electricity use: 2,900 kWh
Annual gas use: 12,000 kWh
Standard: Elec 55p/day + 24p/kWh; Gas 32p/day + 6.0p/kWh
Zero-SC offer: Elec £0/day + 33p/kWh; Gas unchanged

Estimated annual cost

Standard elec: £200.75 + (0.24×2,900)=£696 ? £896.75
Zero-SC elec: £0 + (0.33×2,900)=£957 ? £957
Gas (same both): (0.32×365)=£116.80 + (0.06×12,000)=£720 ? £836.80
Total: Standard ~£1,733.55 vs Zero-SC elec ~£1,793.80

Result: in this typical-usage example, zero-SC costs ~£60/year more because the higher electricity unit rate outweighs the saved standing charge.

What to take from the scenarios: zero standing charge can help at low usage, but for many homes the unit-rate premium is the deciding factor. Always compare on your own annual kWh (or best estimate).

FAQs

1) Are zero standing charge tariffs available everywhere in the UK?

Not always. Energy prices (including standing charges) vary by regional network area, and suppliers may only offer certain tariffs in certain regions. Availability can also depend on your meter type and payment method.

2) Will a zero standing charge tariff definitely lower my bill?

No. It depends on the unit rate difference and your annual usage. Low users may benefit, but many households pay more due to higher unit rates. Treat any saving as estimated until you run the numbers for your home.

3) Can I get zero standing charge on both gas and electricity?

Sometimes, but it’s more common to see it offered for one fuel. If you’re dual fuel, compare your combined annual cost across both fuels rather than focusing on a single headline.

4) Do I need a smart meter to switch?

Not usually, but some tariffs (especially newer products) may be limited to certain meter types. If you have Economy 7/10, a prepayment meter, or a complex setup, options may be narrower.

5) Can I switch if I’m in debt to my current supplier?

It depends on the type of debt and how it’s being repaid. For some customers (especially with prepayment meters), debt can block switching or be transferred under specific rules. If you’re in this position, check guidance from Citizens Advice and speak to your supplier.

6) How long does switching take in the UK?

Switching is typically completed within a few working days for many standard switches, but timings can vary. You should not lose supply during a switch. Always keep records of meter readings on switch day.

7) Is “zero standing charge” allowed under the Ofgem price cap?

Yes, suppliers can design tariffs differently as long as they comply with regulations. The price cap limits what suppliers can charge for standard variable tariffs (and constrains default tariff pricing), but other deals can still vary in how costs are split between standing charge and unit rate.

8) What if I’m a landlord or I’m moving home soon?

If you’re moving soon, check for exit fees and whether it’s worth switching. For landlords between tenancies, a zero standing charge tariff can look attractive for empty periods, but confirm whether the unit rate and any terms still work once the property is occupied.

Trust, methodology and sources

Article details

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

How we assess “zero standing charge” (our approach)

We treat “zero standing charge” as a pricing structure question: what changes in the unit rate and how that interacts with your usage. For this guide, we focused on what a UK household needs to check before switching:

Availability constraints: region (network area), meter type (smart/traditional, Economy 7/10, prepayment), and payment method.
Total annual cost: standing charges + unit rates across both fuels where relevant.
Practical switching friction: exit fees, debt arrangements, billing setup, and timing.

Limitations: We do not publish live tariff pricing on this page. Prices change frequently, and your exact rates depend on your region, meter and supplier. The worked examples are deliberately simplified and should be used to understand the break-even logic, not as a quote.

Sources (UK)

Ofgem (UK energy regulator) — guidance on tariffs, switching and consumer protections
Citizens Advice energy advice — support on switching, billing and debt
GOV.UK — broader government guidance and consumer information

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Updated on 24 Feb 2026