60-second summary
What are standing charges? Here’s a quick rundown of how they affect energy bills:
A standing charge is a fixed daily fee added to your energy bill. You pay it regardless of how much energy you use.
It covers the cost of maintaining the energy network, meter readings and government initiatives.
Standing charge rates are set by energy suppliers and can vary by location and supplier, but there is a cap set by Ofgem.
Between 1 July and 30 September 2025, standing charges are set at 51.37p per day for electricity and 29.82p for gas.
Ofgem plans to introduce zero standing charge tariffs from winter 2025/26.
What is a standing charge?
A standing charge is a fixed daily amount you pay for energy, no matter how much you use. It even applies to properties that are empty for part of the year – a holiday home, for example.
Energy suppliers aren’t legally required to add standing charges to your gas and electricity bills, but nearly all do.
Think of it like a line rental, but for your energy rather than your phone.
Why do we pay standing charges?
The standing charge covers the costs your energy supplier takes on to keep you connected. These include:
Maintaining the energy networks that carry gas and electricity across the country to your home
Carrying out meter readings and billing services
Payments towards government initiatives that help vulnerable households and reduce CO2 emissions.
If you have a dual fuel energy bill, you’ll pay both a gas standing charge and an electricity standing charge. These are listed on your energy bill at a daily rate.
How much do I have to pay for a standing charge?
The daily standing charge depends on your energy supplier and where you live. Currently, most households pay around £300 a year just for the supply of gas and electricity, even if they hardly use any.
There is an energy price cap. This limits the unit rate and standing charge a supplier can charge if you’re on a default or standard variable tariff, or have a prepayment meter. It’s set by Ofgem, the UK’s energy regulator.
Between 1 July and 30 September 2025, standing charges are set at 51.37p per day for electricity and 29.82p per day for gas under Ofgem's energy price cap.
Standing charges vary from region to region. Homes in rural locations tend to have higher standing charges than those in more urban areas. This is because the energy supply has to travel further from where it’s generated. Check with your supplier to see your rate.
Do I pay a standing charge with a prepayment meter?
Yes, standing charges are included with prepayment energy tariffs – where you pay for your energy in advance by topping up your meter with credit.
These charges must still be paid even if you don’t have any credit on your meter. So, when you next top up, you’ll have to pay back all the standing charges you owe. This is something you need to watch out for if you don’t use any gas in summer when the heating is off.
Is there a standing charge for smart meters?
Yes, you’ll still pay a standing charge if you have a smart meter. Standing charges depend on the tariff you choose and where you live, rather than the type of meter you have.
The standing charge will usually be included in the total you see on your in-home display showing you how much energy you’ve used daily, weekly and monthly. That’s why you’ll sometimes see you’ve been charged a small amount even if you’ve been away from home or haven’t used any gas all day.
Can I avoid paying standing charges?
You can only avoid paying standing charges if you find a zero standing charge tariff. But, at present, very few suppliers offer these.
Even if you do find one, you’ll likely be paying more for each unit of gas or electricity you use. So unless your property is empty a lot of the time, you’ll likely be better off overall with a tariff that does have a charge.
Some suppliers offer low standing charge options. But, again, you’d need to work out whether these are right for you based on how much energy you use.
Will standing charges be scrapped?
Ofgem is consulting on proposals to make all suppliers offer a low or no standing charge tariff from winter 2025/26.
These tariffs would have a higher unit rate to compensate for removing the standing charge. But they could be beneficial for low energy users.
The idea is that customers would have more flexibility in finding a tariff that works best for them. But there are concerns that introducing yet more types of tariffs would only make an already complex market even harder to understand.
Ofgem doesn’t want to scrap standing charges altogether because the unit rate would rise for everyone. This could lead to much higher bills for some people, particularly those with disabilities or health issues who need medical equipment plugged in for much of the day.
What are the advantages of a tariff with zero standing charges?
Energy tariffs without standing charges can be cost-effective for some people because:
You only pay for the energy you use
You could save on your bills if you have a property that’s left empty regularly, like a second home.
Top tip
If you’ve bought a home that you haven’t yet moved into, contact your energy supplier to tell them that the property is unoccupied and no energy is being used. You may be able to get the standing charge removed.
What are the disadvantages of a tariff with zero standing charges?
Energy deals without standing charges probably won’t be right for most households. That’s because:
The unit rates for gas and electricity are typically higher
Medium to high energy users may end up paying more for their energy.
Compare energy standing charges
Concerned you’re paying over the odds for your energy? We can help you compare energy tariffs in your local area to see how standing charges and unit rates stack up against what you’re currently paying.
For more than 20 years, Dan has been introducing, developing and managing product propositions across a variety of industries, including energy, insurance and banking, all to get the right outcome for customers.
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