Energy tariffs with a discounted standing charge (UK)

Learn what “discounted standing charge” deals really mean, where they can help (and where they don’t), and how to compare like-for-like across UK suppliers.

  • Clear explanation of standing charges, unit rates, and the usual trade-offs
  • Two realistic cost scenarios with worked numbers (with assumptions shown)
  • Whole-of-market comparison tips, eligibility checks, and common pitfalls
Get your energy quote How discounted standing charges work

Estimates only. Tariffs, eligibility and prices vary by region, payment method and meter type. Always check the tariff information label before you switch.

Fast answer: what is a discounted standing charge tariff?

In the UK, the standing charge is the daily fixed amount you pay to have an electricity/gas supply (covering things like network costs and metering). A “discounted standing charge” tariff is simply one where that daily fixed amount is lower than other available tariffs for your region, meter type and payment method.

Important: A lower standing charge often comes with a higher unit rate (p/kWh). Whether it’s cheaper depends on how much energy you use.

Key takeaways (UK-specific)

Best for

Low users (e.g., small flats), empty homes part of the week, or anyone trying to reduce fixed daily costs.

Watch for

Higher unit rates, minimum contract terms, exit fees, or discounts that only apply with Direct Debit or paperless billing.

Always compare

Your estimated annual cost (standing charge + unit rates), matched to your meter (standard/eco7/smart/prepay) and region.

Compare discounted standing charge tariffs (whole of market)

We’ll match deals available for your postcode and show the trade-off between standing charge and unit rate. You’ll see estimated costs for your usage so you can decide if a discounted standing charge makes sense.

Tip: If you don’t know your annual usage, use figures from your latest bill, your online account, or your smart meter app. If you’re estimating, choose a tariff that stays competitive even if your usage changes.

How discounted standing charges work (in practice)

Standing charge
A fixed amount charged per day (shown as p/day). You pay it even if you use no energy.
Unit rate
What you pay for each unit of energy (p/kWh). Many low-standing-charge deals recover costs by increasing this.
Total cost (what matters)
Your bill is the combination: (standing charge × days) + (unit rate × kWh used), plus VAT and any discounts/charges.

Two realistic scenarios (with numbers)

Below are simplified examples to show the trade-off. Real prices vary by region, meter type and payment method, and can change. VAT is included for consistency.

Scenario A: low electricity use (small flat)

Assumptions: 1,800 kWh/year electricity; single-rate meter; prices are illustrative.

Example Standing Unit
Low standing charge 35p/day 28p/kWh
Higher standing charge 60p/day 25p/kWh

Estimated annual cost:
Low standing: (0.35×365)=£127.75 + (0.28×1800)=£504 ? £631.75
Higher standing: (0.60×365)=£219.00 + (0.25×1800)=£450 ? £669.00

In this example, the discounted standing charge works out cheaper for a low user.

Scenario B: higher electricity use (family home)

Assumptions: 4,200 kWh/year electricity; single-rate meter; prices are illustrative.

Example Standing Unit
Low standing charge 35p/day 28p/kWh
Higher standing charge 60p/day 25p/kWh

Estimated annual cost:
Low standing: £127.75 + (0.28×4200)=£1,176 ? £1,303.75
Higher standing: £219.00 + (0.25×4200)=£1,050 ? £1,269.00

In this example, the higher standing charge tariff wins because the lower unit rate matters more at higher usage.

Quick rule of thumb: A discounted standing charge is most likely to help if your usage is low or unpredictable. If you use a lot of kWh, unit rate differences can outweigh a standing charge discount.

Get a personalised quote

Tell us a few details and we’ll show tariffs available for your home, including options that may have a lower standing charge.

Start your comparison

By submitting, you confirm this is for a UK home energy comparison. We’ll use your details to provide quotes and contact you about your comparison. You can opt out at any time.

Not ready to share details? Scroll down for a checklist and a comparison table to help you decide what to look for on any tariff quote.

Types of “discounted standing charge” offers you may see

1) Lower standing charge, higher unit rate

The most common trade-off. Works best if you use fewer kWh, or if your usage drops in summer (e.g., some all-electric homes with heat pumps may still use a lot year-round).

2) Bundled discounts or bill credits

Some tariffs market a “discounted standing charge” but apply it via a credit/discount when you pay by Direct Debit or meet certain conditions. Always read how the discount is applied and whether it can be removed.

3) Time-of-use tariffs (smart meter)

On some smart tariffs, the standing charge may look competitive, but costs shift into peak unit rates. These can work well if you can move usage off-peak (e.g., EV charging), but can be pricey if most usage happens at peak times.

4) Gas + electricity vs single fuel

Dual-fuel discounts vary. A low standing charge on electricity doesn’t automatically mean the gas standing charge is also low (and vice versa). Compare each fuel’s standing charge and unit rate separately.

Comparison table: when a discounted standing charge can help

Use this as a quick filter before you dive into quotes. It’s not a guarantee—always check estimated annual cost for your usage.

Your situation Discounted standing charge: likely impact What to check on the quote
Low usage (small household / efficient home) Often helps Unit rate increase vs standing charge drop; estimated annual cost
High usage (large household / electric heating) May not help Unit rate is usually the deciding factor; check peak rates if time-of-use
Second home / empty weekdays Can help a lot Standing charge per day; any minimum term; exit fees if you sell/move
Prepayment meter Depends (fewer deals) Eligibility, top-up method, and whether the “discount” is Direct Debit-only
Economy 7 / multi-rate Depends Day vs night rates; your actual split; standing charge can be different to single-rate

Decision checklist: who it suits (and who it doesn’t)

This approach may suit you if…

  • You use relatively little energy (or your usage varies a lot month-to-month)
  • You’re in a smaller home and want to reduce fixed daily costs
  • You’re comfortable comparing estimated annual cost rather than chasing one headline price
  • You’ve checked any conditions (Direct Debit, paperless billing, smart meter requirements)

It may not suit you if…

  • Your household uses a lot of electricity/gas (unit rate dominates your bill)
  • You can’t meet eligibility criteria (e.g., discount only for Direct Debit)
  • You’re on Economy 7 and your off-peak split is low (day rates could be high)
  • You want the simplest budgeting option and prefer a widely available standard variable tariff

Costs, exclusions and common pitfalls (UK)

Discounted standing charge tariffs can be legitimate—but the details matter. These are the most common reasons people end up paying more than expected.

1) Higher unit rate wipes out the discount

A standing charge drop of 20–30p/day can be outweighed by only a few p/kWh extra if you use lots of energy.

2) Region and payment method changes the price

Standing charges and rates vary by electricity network region and whether you pay by Direct Debit, on receipt of bill, or prepay.

3) “Discount” is conditional

Some tariffs apply the lower standing charge only if you meet conditions (e.g., Direct Debit, online account, smart meter, or dual fuel).

4) Exit fees on fixed deals

If you switch again or move home mid-contract, you may pay an exit fee. Always check the tariff information label.

5) Economy 7 splits

A cheap standing charge doesn’t help if your day rate is high and most of your electricity use happens during the day.

6) “No standing charge” isn’t the same thing

Some specialist tariffs advertise no standing charge, but unit rates can be much higher and availability may be limited. Compare annual cost carefully.

What to do before switching: check (1) your meter type, (2) payment method, (3) whether prices shown include VAT, (4) any end date/price guarantee and exit fees, and (5) the tariff information label or key features document.

FAQs: discounted standing charge tariffs in the UK

Are standing charges the same across the UK?

No. Standing charges vary by electricity distribution region (based on your postcode), fuel (gas vs electricity), meter type, and sometimes payment method. Quotes should show your region-specific rates.

Can I get a discounted standing charge if I’m on a prepayment meter?

Sometimes, but choices can be more limited. Many “discount” structures assume Direct Debit. If you’re prepay, check eligibility carefully and compare based on estimated annual cost using your actual usage.

Is a lower standing charge always better?

Not necessarily. Suppliers can rebalance costs between standing charge and unit rate. The best measure is the total estimated annual cost for your household’s kWh usage.

Do solar panels change whether a discounted standing charge makes sense?

They can. If solar reduces the electricity you buy from the grid, a lower standing charge may become more attractive. But if you’re on a smart export or time-of-use tariff, the unit rates at different times can matter more than the standing charge alone.

What’s the difference between “discounted standing charge” and “no standing charge”?

A discounted standing charge simply means lower than other tariffs available for your details. “No standing charge” tariffs remove the daily charge, but often have higher unit rates and may suit only very low usage. Compare annual cost and check terms.

Can suppliers change the standing charge during my contract?

If you’re on a fixed tariff, prices are usually fixed for the term (subject to contract terms). On standard variable tariffs, prices can change. Always check the tariff’s “prices fixed until” date and the product’s key features.

Will switching affect my supply?

No. Your gas and electricity still come through the same pipes and wires. Switching changes the company that bills you. There’s typically no interruption to supply.

What if I rent—can I choose a tariff?

Usually yes, as long as you pay the energy bills and have a direct relationship with the supplier. If bills are included in rent or you’re on a landlord’s supply, your options may be limited.

Trust, methodology and sources

Page ownership

Reviewed by
Energy Specialist
Last updated
February 2026

How we assess “discounted standing charge” claims

  • We compare like-for-like: same postcode region, meter type, payment method, and fuel(s).
  • We focus on estimated annual cost: standing charge + unit rate(s), using the user’s usage where available.
  • We check tariff terms: contract length, exit fees, eligibility conditions, and whether discounts are time-limited.
  • We highlight uncertainty: prices vary and can change; examples on this page are illustrative, not promises.

Limitations: We can’t guarantee every tariff is available to every household at all times. Suppliers may restrict products by credit checks, smart meter status, or capacity. Always confirm with the supplier before completing a switch.

Helpful UK sources

Ready to check if a lower standing charge would suit your home?

Compare whole-of-market tariffs by postcode and see the standing charge/unit rate trade-off based on your usage.

Start my comparison Re-read the key takeaways

Remember: the cheapest standing charge isn’t always the cheapest tariff overall. We’ll help you compare based on estimated annual cost.

Back to Solar Energy



Updated on 24 Feb 2026