Are £0 standing charge energy tariffs worth it in the UK?
A £0 standing charge can sound like an instant win — but many tariffs recover costs through higher unit rates or added fees. Use this guide to work out if it suits your usage, meter type and payment method.
- Best suited to low usage homes, second homes and some solar/export-heavy households (depending on rates).
- Often worse value for average/high usage because the per-kWh price is higher.
- Always compare the total annual cost (standing charge + unit rates + any fees), not just “£0”.
Prices and availability vary by region, meter type and payment method. This page is guidance — always confirm tariff T&Cs and your personalised quote.
Fast answer: sometimes — but only if your usage is low enough
A £0 standing charge tariff can be worth it in the UK if you use very little gas/electricity, or if your home is empty for long periods. For most households, the supplier usually makes up for the missing standing charge by setting a higher unit rate (p/kWh) or adding conditions/fees — so the annual cost can be higher.
When it’s more likely to be worth it
- Low usage (e.g., small flat, very efficient home, heavy time away).
- Second homes / holiday lets where standing charges feel like “paying for nothing”.
- Some solar households who import very little (but check export/import rates together).
- You’re happy with the tariff structure and any minimum spend rules (if present).
When it’s usually not worth it
- Average/high usage — a higher unit rate can quickly outweigh the saved standing charge.
- You’re on a prepayment meter or in debt (options and rules can be more restrictive).
- You have (or need) a tariff with extra features (e.g., EV/heat pump time-of-use) that doesn’t come in £0 form.
- You don’t want to risk exit fees or more complex T&Cs.
Quick rule of thumb: compare tariffs using your expected annual kWh. A £0 standing charge is only “better” if the higher unit rate doesn’t cost you more than the standing charge you’d otherwise pay.
Compare £0 standing charge options against normal tariffs
The only fair way to judge “£0” is to compare the total annual cost using your postcode, meter type and payment method. We’ll show tariffs across the market, where available, and highlight key terms (like exit fees).
Tip: if you don’t know your annual usage, use your latest bill/app statement. Look for “kWh used” (electricity and gas separately) over 12 months — or your best estimate.
What does the standing charge pay for?
In the UK, a standing charge is a daily fixed amount that contributes to things like maintaining the energy network, metering, billing, and policy costs. Even if you use no energy, those fixed costs still exist — so a “£0 standing charge” tariff typically recovers the cost elsewhere.
- Higher unit rates (you pay more per kWh).
- Bundled fees or conditions (e.g., minimum monthly spend/usage, or a membership-style charge).
- Limited eligibility (meter type, payment method, or region).
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£0 standing charge vs normal tariffs: what to compare
Use this table as your decision framework. You don’t need to be an expert — you just need the numbers in the same units (p/day and p/kWh) and any key conditions.
| What to check | £0 standing charge tariff | Typical “normal” tariff | Why it matters |
|---|---|---|---|
| Standing charge (p/day) | 0p/day (but check for other fixed fees) | Often 40–70p/day depending on fuel/region/meter | Daily charges add up even if you use very little energy. |
| Unit rate (p/kWh) | Usually higher | Usually lower | This is where £0 tariffs often recover the “missing” standing charge. |
| Payment method | May be limited (e.g., Direct Debit only) | More options (DD / receipt of bill / prepay) | Rates and availability can change by payment type. |
| Meter type | May require smart meter / single-rate | Often available across more meter types | Economy 7 and complex setups can price differently. |
| Exit fees / contract length | Sometimes fixed-term with exit fees | Can be variable or fixed | If it doesn’t suit you later, fees matter. |
| Other conditions | Minimum spend/usage, membership, online-only billing | Fewer “extra” conditions | Small-print can change the real cost and flexibility. |
Decision checklist: who £0 standing charge suits
- Likely suits you if…
- You’re confident your annual usage is low, or the property is empty a lot of the time.
- You can meet any eligibility rules (meter type, payment method, online billing).
- You’ve compared the total cost against at least one normal tariff using your usage.
- Probably not for you if…
- You’re a typical household with steady energy use year-round.
- You need a specialist tariff (EV, heat pump, Economy 7) and the £0 option has poorer rates at your usage pattern.
- You want maximum simplicity and flexibility (variable tariff, no special conditions).
Two realistic scenarios (estimated)
These examples show the trade-off. They’re illustrative only — your rates and standing charges vary by region and tariff.
Scenario A: Low-use flat (electricity only)
Assumptions: 1,200 kWh/year. Normal tariff: 55p/day standing charge, 25p/kWh. £0 tariff: 0p/day, 33p/kWh.
Normal: (0.55×365)=£200.75 standing + (0.25×1,200)=£300 usage ? £500.75/year
£0: (0×365)=£0 + (0.33×1,200)=£396 usage ? £396/year
Outcome: £0 standing charge looks better at low usage in this example.
Scenario B: Typical gas + electric household
Assumptions: Electricity 2,900 kWh/year; Gas 12,000 kWh/year. Normal: Elec 55p/day + 25p/kWh; Gas 35p/day + 6.5p/kWh. £0: Elec 0p/day + 31p/kWh; Gas 0p/day + 8.2p/kWh.
Normal: Standing (0.55+0.35)×365=£328.50 + usage (0.25×2,900)=£725 + (0.065×12,000)=£780 ? £1,833.50/year
£0: Standing £0 + usage (0.31×2,900)=£899 + (0.082×12,000)=£984 ? £1,883/year
Outcome: even with no standing charges, higher unit rates can make it cost more overall.
Break-even idea: the “saved” standing charge is fixed. The “extra” unit rate cost grows with each kWh you use — so the more you use, the less likely £0 standing charge wins.
Costs, exclusions and common pitfalls (UK-specific)
£0 standing charge tariffs can be legitimate — but they’re not always straightforward. Here’s what to watch for before you switch.
1) Much higher unit rates
The most common trade-off. If you use more than a small amount, the higher p/kWh can outweigh the daily standing charge you’d otherwise pay.
2) Eligibility by meter type
Some tariffs are limited to certain setups (e.g., smart meters, single-rate electricity, not Economy 7). Always check your current meter and tariff type first.
3) Payment method restrictions
Direct Debit and online-only billing are common requirements. If you prefer receipt of bill or have a prepayment meter, your options can be different.
4) Minimum spend / minimum usage
Some “£0” structures include conditions like a minimum monthly charge or minimum annual consumption. If you don’t meet it, you may pay a fee or lose the benefit.
5) Exit fees on fixed deals
If rates change and you want to move, exit fees can reduce flexibility. Check before switching, especially if you’re testing a new tariff type.
6) Solar and export assumptions
If you have solar PV, you’re balancing import costs with export payments (SEG). A £0 standing charge import tariff may not pair well with your export rate.
A simple way to sanity-check a £0 standing charge quote
- Write down your annual kWh for electricity (and gas if applicable).
- Calculate annual standing charge on a normal tariff: standing charge (in £/day) × 365.
- Calculate the unit-rate “uplift” on the £0 tariff: (£0 unit rate - normal unit rate) × annual kWh.
- If the uplift is higher than the saved standing charge (plus any other fees), the £0 tariff likely costs more.
FAQs
Are £0 standing charge tariffs real in the UK?
They can be real, but they’re not “free energy”. Suppliers still have fixed costs, so £0 standing charge tariffs typically recover those costs via higher unit rates, fees or eligibility rules. Availability can change quickly.
Do £0 standing charge tariffs beat the Ofgem price cap?
The Ofgem price cap limits what suppliers can charge typical customers on default tariffs (and also constrains some variable rates), but it doesn’t guarantee a £0 standing charge tariff will be cheaper for you. Always compare your estimated annual cost using your usage.
Will I pay nothing if I don’t use any energy?
Not necessarily. With a true £0 standing charge and no other fixed fees, you could pay £0 for zero usage — but many tariffs have conditions (minimum spend/usage) or other charges. Always read the tariff information and T&Cs before switching.
Are £0 standing charge tariffs available for gas and electricity?
Sometimes, but not always for both fuels, and not in every region. Some offers may apply to electricity only, or be limited to certain meter/payment types.
Can I get a £0 standing charge tariff on a prepayment meter?
It depends. Prepayment tariffs can have different availability and pricing, and if you’re repaying a debt via your meter, your costs may be affected. If you’re struggling, it’s worth checking support via Citizens Advice energy guidance.
Do smart meters affect whether I can get these tariffs?
Some £0 standing charge or specialist tariffs may require a smart meter (especially time-of-use deals), but not all. Your tariff options can also differ if you’re on Economy 7 or have a complex metering setup.
Could a £0 standing charge tariff be good for a second home?
Potentially, because standing charges add up even when the property is empty. But check: (1) the unit rate when you do use energy, (2) any minimum spend clauses, and (3) whether the supplier requires you to keep an account active year-round.
Is switching risky — what if I change my mind?
If you switch online or by phone, you typically have a cooling-off period (rules and timing depend on the product and how it’s sold). Also watch for exit fees on fixed deals. Ofgem explains switching and consumer protections on its website.
Trust, methodology and sources
Page governance
- Written by:
- EnergyPlus Editorial Team
- Reviewed by:
- Energy Specialist
- Last updated:
- February 2026
How we assess whether £0 standing charge is “worth it”
We focus on total cost and tariff suitability, not marketing labels. In practice, that means:
- Cost comparison: standing charge + (unit rate × expected annual kWh) for each fuel, plus any fixed fees we can identify in the tariff info.
- Eligibility checks: region, payment method (Direct Debit vs other), meter type (smart/Economy 7/single-rate), and whether it’s single-fuel or dual-fuel.
- Risk checks: contract length, exit fees, and any minimum spend/usage clauses.
- User fit: we flag cases where a tariff is structurally mismatched (e.g., high usage on a high unit-rate £0 deal).
Limitations: tariff availability and rates can change frequently, and some fees/conditions may only appear in full T&Cs. Always confirm details on your quote before switching.
Sources (UK)
- Ofgem (UK energy regulator) — regulation, price cap info, switching rules and consumer protections.
- Citizens Advice energy advice — help with bills, meters, switching and complaints.
- GOV.UK — official UK government guidance (including energy support schemes when available).
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