A standing charge is the fixed daily amount you pay for being connected to gas or electricity supply, regardless of how much energy you use.
It is separate from your usage cost. The usage part of your bill changes with the number of kWh used, while the standing charge is usually added every day.
How standing charge is calculated
A standing charge is usually shown as pence per day. To estimate the annual standing charge, multiply the daily charge by the number of days.
annual standing charge = daily standing charge × days
For example, a 50p daily standing charge would cost about £182.50 over 365 days before any usage cost is added.
Current UK price-cap standing charge example
Ofgem’s price cap for 1 July to 30 September 2026 includes average Direct Debit standing-charge examples of 57.19p/day for electricity and 29.04p/day for gas. Actual standing charges can vary by region, payment method and tariff.
57.19p/day
Average Direct Debit electricity standing charge for the July–September 2026 cap period.
29.04p/day
Average Direct Debit gas standing charge for the July–September 2026 cap period.
Standing charge vs unit rate
The standing charge is fixed daily. The unit rate is the price charged for each kWh of energy used.
| Bill item | What it means | What changes it? |
|---|---|---|
| Standing charge | Fixed daily amount. | Tariff, supplier, region and payment method. |
| Unit rate | Price per kWh used. | Tariff, fuel, region, payment method and usage. |
Why do energy bills have standing charges?
Standing charges cover fixed costs linked to energy supply, such as maintaining networks, metering and other supplier or system costs. They are not based on how much energy you personally use that day.
This is why very low-use households can still have a noticeable bill: they may use little energy, but still pay the daily standing charge.
Standing charge and the energy price cap
Ofgem says the energy price cap limits the maximum suppliers can charge people on default tariffs for each unit of energy and the daily standing charge. The cap is not a maximum total bill.
This matters because lowering your usage can reduce the usage part of the bill, but it does not remove the standing charge.
Can you get a lower standing charge?
Some tariffs may offer a lower standing charge and a higher unit rate, or the other way around. A low-standing-charge tariff may suit some low-use households, but the full annual cost matters more than one number.
Compare the total annual cost using your actual usage before choosing. A lower standing charge can be outweighed by a higher unit rate if you use a lot of energy.
FAQs
What is a standing charge?
A standing charge is a fixed daily amount on an energy tariff, separate from the unit rate charged for the energy you use.
Do I pay standing charge if I use no energy?
Usually, yes. Standing charges are normally charged daily, even if little or no energy is used.
Can reducing energy use lower standing charges?
No. Reducing usage lowers the kWh usage cost, but the standing charge is fixed by the tariff.
Should I choose the lowest standing charge tariff?
Not automatically. Compare the full annual cost, including unit rates and your actual usage.