Standing Charge: What It Is and How It Affects Your UK Energy Bill
A clear, practical guide from Energy Plus to help households and businesses understand the daily charge on gas and electricity bills — and ways to keep costs down.
What is a standing charge?
The standing charge is a fixed daily amount you pay for each energy meter, covering the cost of keeping you connected to the network. It applies whether you use energy that day or not. It is separate from your unit rate (the price per kWh you actually consume).
In Great Britain, suppliers set standing charges within rules overseen by Ofgem. Amounts vary by region, meter type (e.g., standard, Economy 7, prepayment), and tariff. The charge can change over time, including at regular price cap updates for standard variable tariffs.
What does the standing charge help pay for?
- Maintenance of energy networks and infrastructure
- Metering services and admin (including smart and prepayment meters)
- Industry and policy costs (e.g., certain environmental and social schemes)
- Supplier operating costs to keep your service running
How the standing charge is calculated
You pay a daily standing charge for each meter on your property. Your bill will show the daily amount and the number of days in the billing period.
Simple example:
If your electricity standing charge is 45p per day and your billing period covers 30 days, the fixed part of your bill is 0.45 × 30 = £13.50, plus your usage charges.
Because the standing charge is fixed, it can have a bigger impact on low-usage customers. High-usage customers are more affected by the unit rate. Choosing the right balance for your usage pattern matters.
Typical standing charge ranges in the UK
Gas
Typically lower than electricity standing charges, but still a daily fixed cost.
- Regional variations apply
- Prepayment may differ
- Reviewed periodically
Figures on this page are general guidance only. Real prices vary by supplier, region, meter, and tariff, and may change at short notice. Always check your latest contract or price cap details.
Low standing charge or low unit rate: which is better?
It depends on how much energy you use:
- Lower usage (e.g., smaller homes, second homes, very efficient properties): A lower standing charge can help reduce your total bill.
- Higher usage (e.g., larger households, electric heating, businesses): A lower unit rate often saves more overall.
Tip: Compare whole-bill scenarios. Multiply the standing charge by the number of days, then add unit rate × estimated kWh. Look at annual totals to find the best fit.
About the Ofgem price cap
The price cap limits the unit rates and standing charges on standard variable tariffs in England, Scotland and Wales. It is updated periodically. Your costs may still vary based on region, payment method, and meter type. Fixed tariffs are not capped in the same way but remain subject to market conditions.
Why choose Energy Plus
- Quick, no-obligation quotes tailored to your usage
- Support for homes and businesses UK-wide
- Clear guidance on standing charges vs unit rates
Standing charges by meter and tariff type
- Standard credit meters: Common for many households; standing charge varies by region and supplier.
- Prepayment (PAYG): Standing charges can differ from credit meters. Some prepayment tariffs may show higher daily charges or different structures.
- Smart meters: Enable more accurate billing and access to time-of-use tariffs; the standing charge still applies.
- Economy 7/10 and multi-rate: May have a different standing charge and separate day/night unit rates.
- Business energy: Standing charges vary widely by contract size and meter class (including half-hourly meters). Bespoke quotes are recommended.
Good to know: If a property is connected to both gas and electricity, you’ll usually have two standing charges — one per meter.
Practical ways to reduce your total bill
- Choose a tariff that suits your usage profile (low standing charge vs low unit rate).
- Review your payment method and consider Direct Debit if it lowers costs.
- Use smart meter insights to shift or reduce consumption where possible.
- Improve efficiency: insulation, draught-proofing, LED lighting, smart controls.
- Check eligibility for grants or support schemes if applicable.
Get a tailored energy quote
We’ll compare tariffs and explain how standing charges and unit rates affect your bill, so you can choose with confidence.
- No obligation — quick and simple
- Home and business options
- UK-based support
Prefer to talk? Contact our team.
Standing charge FAQs
This information is general guidance for Great Britain and not financial advice. Always check your tariff terms and your latest bill.
Ready to optimise your energy costs?
Whether you prioritise a lower standing charge or a sharper unit rate, Energy Plus will help you compare options and choose a plan that fits your usage. Our friendly UK team is here to help.