Energy Standing Charges Explained

What a standing charge is

The standing charge is a daily amount included in the tariff for supplying energy and maintaining the account and network arrangements. The exact costs behind it depend on the tariff and regulated pricing framework. It is not a charge for a particular appliance or a measure of how much energy you used.

Standing charge versus unit rate

The unit rate is multiplied by the kWh you use. The standing charge is multiplied by the number of days in the billing period. A fair comparison needs both: a low unit rate can be offset by a higher daily charge, while a lower standing charge does not automatically make a tariff cheaper for every usage pattern.

Illustrative arithmetic

Illustrative example only: a hypothetical standing charge of 35 pence per day for 365 days is £127.75 before any other bill items. If the same tariff charged 25 pence per kWh and the household used 2,000 kWh, the usage part would be £500; adding the example standing charge gives £627.75 before other charges or adjustments.

Why charges can differ

Standing charges can differ by fuel, region, payment method, meter type and tariff. Ofgem publishes regional and payment-method figures for price-capped default tariffs in Great Britain. Your own bill or quote is the right source for the charge that applies to your account.

Check the period and fuel

Read the gas and electricity lines separately and multiply the daily charge by the correct number of days. Check whether a tariff is single-rate or multi-rate, and keep any fixed fee, discount or exit fee separate from the standing charge.

Compare the whole tariff

When comparing two offers, use the same usage period and include both standing charges, unit rates, payment method, term, exit fees and known conditions. A tariff with no or low standing charge, where offered, may still have a different unit rate or eligibility terms.

Use your own figures

The comparison tool accepts customer-entered tariff figures; it is not a live supplier feed. If your bill does not show the charge clearly, ask the supplier for the unit rate, daily standing charge, effective dates and any change notice.

Common questions