Standing charge explained (UK): what it is & how to reduce it

Understand the electricity and gas standing charge, why it changes, and how to compare whole-of-market tariffs to cut your overall bill. Get personalised results in minutes.

  • See how standing charges affect low, medium and high usage homes
  • Compare tariffs from across the market (not just a panel)
  • Switch online with support throughout the process

For UK domestic customers. Prices and availability vary by region, meter type and payment method.

Compare tariffs with the right standing charge for your usage

The standing charge is the fixed daily amount you pay for your gas and/or electricity supply. If your household uses less energy (for example, a small flat, a second home, or someone out all day), the standing charge can make up a bigger share of the bill.

EnergyPlus compares whole-of-market home energy tariffs to help you balance standing charge and unit rate properly—so you don’t switch to a deal that looks good on one number but costs more overall.

Tip: The “best” standing charge depends on your annual kWh usage, your region, and your meter type (standard vs smart, single-rate vs Economy 7). Compare with your actual usage if you can.

What you’ll need (takes 2 minutes)

  • Your postcode (to match regional network costs)
  • Whether you have gas, electricity, or both
  • Your payment method (Direct Debit, prepay, etc.)
  • Optional: estimated annual usage (kWh) from your bill

Get whole-of-market results

Start with your postcode to see standing charges and unit rates available in your area.

How to cut costs

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Why the standing charge matters when you compare energy

It’s paid even if you use zero energy

The standing charge is a daily fee. If you’re away, or you’re a low-usage household, it can represent a significant share of your bill.

You need to balance it against the unit rate

Tariffs can swap a lower unit rate for a higher standing charge (or vice versa). The best deal depends on your annual kWh, not a single headline number.

It varies by region and meter

Standing charges differ across the UK because distribution network costs vary. Meter type (including Economy 7 and prepay) can also change what you pay.

What is a standing charge?

A standing charge is a fixed daily cost that you pay to have your home connected to the gas and/or electricity network. It is charged per day, regardless of how much energy you use.

Your bill is typically made up of:

  • Standing charge (pence per day)
  • Unit rate (pence per kWh you use)

Most domestic tariffs in the UK have a standing charge. Some tariffs may advertise a lower standing charge, but this can come with a higher unit rate—so comparing the total projected annual cost is key.

What does the standing charge pay for?

  • Maintaining the energy networks and local infrastructure
  • Metering, billing and customer service costs
  • Government and industry costs (varies by tariff and period)
  • Supporting vulnerable customers and market-wide services

Exact components and weightings differ between suppliers and tariffs, and can change over time.

How is the standing charge set in the UK?

Standing charges are influenced by several factors, including regional network costs and tariff structure. For many households, the biggest surprise is that two neighbours can be on the same supplier but see different standing charges because of regional differences.

Key variables that can affect your standing charge

  • Region (distribution network area linked to your postcode)
  • Fuel (electricity vs gas; each has its own charges)
  • Meter type (standard, smart, Economy 7, etc.)
  • Payment method (Direct Debit vs prepay can differ)
  • Tariff type (fixed, variable, tracker where available)
  1. Check your current tariff details on your latest bill or online account: standing charge (p/day) and unit rate (p/kWh) for each fuel.
  2. Estimate your annual usage (kWh) if possible. For the best comparison, use your last 12 months of kWh, not spend (£).
  3. Compare whole-of-market options using your postcode and meter/payment details.
  4. Choose the lowest projected annual cost, considering exit fees, fixed-term length, and customer service preferences.

If you’re unsure about your meter type or whether you’re on Economy 7, you can still start a comparison and refine details as you go.

How to reduce the impact of the standing charge

1) Compare based on total cost

Don’t pick a tariff purely because the standing charge looks lower. Use your usage to compare the projected annual cost, including both standing charge and unit rate.

2) Check if Economy 7 still suits you

If your off-peak usage has changed, Economy 7 can become less cost-effective. A comparison can show if a single-rate tariff is now cheaper.

3) Review payment method & meter setup

Some customers can access different pricing depending on payment method or meter type. If you’ve moved home or changed circumstances, it’s worth checking.

Important: You can’t usually remove the standing charge without changing to a specific tariff structure (if available). The practical way to reduce its impact is to switch to a tariff with a better overall balance for your usage.

Standing charge vs unit rate: a simple way to compare

When you compare tariffs, focus on what you’ll pay over a year. Use the formula below to understand why a lower standing charge can still be more expensive overall.

Annual cost estimate (per fuel) = (standing charge × 365) + (unit rate × annual kWh)

Your supplier will show prices in pence. A comparison tool converts the maths into a projected annual £ cost for each tariff.

Scenario Standing charge Unit rate Who it often suits
Lower standing charge, higher unit rate Lower p/day Higher p/kWh Lower-usage homes where fixed daily costs dominate
Higher standing charge, lower unit rate Higher p/day Lower p/kWh Higher-usage homes where kWh costs dominate
Balanced standing charge and unit rate Mid-range p/day Mid-range p/kWh Most households when matched to real usage

If you don’t know your kWh, you can still compare using typical usage bands—then refine using your bill for a more accurate result.

Standing charge FAQs

Can I get a tariff with no standing charge?

No-standing-charge tariffs can exist from time to time, but they’re not always available and often have higher unit rates. It’s best to compare based on total annual cost for your usage and postcode.

Do I pay the standing charge if my supply is off?

In most cases, yes: the standing charge is for being connected to the network and having an account/metered supply. If you’re unsure, check your tariff terms or bill.

Why are standing charges different across the UK?

Electricity and gas distribution costs vary by region. Your postcode determines your distribution area, which influences the standing charge shown on tariffs available to you.

Is the standing charge the same as the Energy Price Cap?

The Energy Price Cap (where applicable) limits the maximum level of certain charges on default tariffs, and includes both unit rates and standing charges. Your exact prices still depend on region, meter and payment method.

Does switching supplier change my standing charge immediately?

If you switch to a new tariff, the new standing charge applies from the switch date (as billed by your supplier). Your old supplier’s charges apply up to the final meter reading.

How do I find my current standing charge?

Check the “electricity charges” and “gas charges” section on your bill or in your online account. You’ll usually see it listed as standing charge in pence per day.

Need help? Start a whole-of-market comparison and we’ll highlight tariffs where the standing charge and unit rate best match your household.

Trusted switching, clearer costs

Whole-of-market comparison

We search tariffs across the market to help you find the best match for your standing charge and unit rate—based on your postcode and details.

Clear, household-friendly results

We focus on what you’re likely to pay in practice, not just one price line. Compare projected annual costs and key tariff terms side by side.

Support from start to switch

Switching can feel complicated. We guide you through the essentials—postcode, meter type, and payment method—so you can move with confidence.

What people say

“I didn’t realise how much the standing charge was adding to my bill. EnergyPlus helped me compare properly and switch to a better overall deal.”

— UK homeowner

Common “gotcha” we help you avoid

Choosing a tariff with a low unit rate but a high standing charge (or the other way around) can backfire. We surface both prices clearly so you can decide based on your usage.

Ready to see standing charges in your area?

Compare whole-of-market home energy tariffs and choose the best overall price for your household—not just the lowest headline rate.

Switching is for domestic customers. Tariffs, prices and standing charges vary by region, meter type and payment method.

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Updated on 31 Dec 2025