Standing charges explained
Understanding your energy bill can be confusing, especially when it comes to standing charges.
In this guide, we'll explain what standing charges are, who sets them, and how they impact the amount you pay for your energy.
What are energy standing charges?
A standing charge is a daily fee that is included in most gas and electricity bills. Standing charges help cover the costs of essential services such as maintaining the supply network, taking meter readings, environmental schemes, and supporting government-run social schemes that provide funding to help those who struggle to afford their energy. You'll pay the standing charge every day, even if you don't use any energy.
Who sets the standing charge?
While energy suppliers set their own standing charge per tariff, Ofgem regulates and limits the maximum amount that can be charged on a standard variable tariff under their energy price cap.
If you're interested in how the price cap could change in the future, you can view EDF's price cap predictions, which are updated regularly.
Do all energy tariffs have standing charges?
Although most tariffs come with standing charges, there are exceptions. Some suppliers do offer tariffs with low or no standing charges, though unit rates on these tariffs are typically higher.
Why do energy companies charge a standing charge?
Suppliers aren't required to apply a daily standing charge, but most have chosen to split unit rates and standing charges into separate charges to ensure that essential network upkeep and maintenance costs are shared evenly across properties.
If the cost of upkeep were factored into the price suppliers charge per kilowatt-hour, higher energy users, including more vulnerable households that depend on medical equipment, would contribute a disproportionately larger share of the maintenance funds.
What do standing charges cover?
Reliable energy networks
Supports the organisations and infrastructure that help keep the energy network operating safely and reliably.
Metering services
Helps cover the systems and services needed to manage your energy supply.
Building a renewable energy future
Supports industry and environmental programmes designed to improve the UK's energy future.
Responding to emergencies
Helps ensure engineers and network operators can respond when faults or disruptions occur.
Supporting vulnerable customers
Helps fund schemes that provide energy-related support to customers who need extra help.
What is the difference between a standing charge and a consumption charge?
When you pay your energy bill, it usually includes two main costs:
- Unit rate: The price you pay for the energy you use
- Standing charge: A fixed daily fee for being connected to the gas or electricity network
There are a few key differences between the two:
| Unit rate | Standing charge | |
|---|---|---|
| What is it? | Cost of the energy you use | Fixed daily fee |
| How is it charged? | Pence per kilowatt-hour (p/kWh) | Pence per day (p/day) |
| Does the cost change with usage? | Yes, it scales directly with your usage | No, it's a fixed daily cost, paid even if no energy has been used |
| What does it cover? | The gas and electricity you use | Connection to the energy network, meter maintenance and related services |
While unit rates and standing charges are the main components of your energy bill, they aren’t the only figures you may see. Explore what else makes up the average energy bill and how other factors can impact how much you pay.
How do standing charges affect your bill?
While unit rates determine the cost of the energy you use, your standing charge is a fixed daily cost. Understanding when standing charges are applied and how much they cost on average can help you to understand your energy bill better.
When do I pay standing charges on my energy?
Standing charges are applied daily and added to your energy bill, even if no energy use is recorded. You'll pay these charges as part of your regular bill payments.
Typical daily rates for gas and electricity
Your standing charge can vary depending on your supplier, location, and tariff agreement, but as part of its price cap, Ofgem publishes average electricity and gas standing charges every three months.
Average electricity and gas standing charges
| Fuel | 1 July to 30 September 2026 | 1 October to 31 December 2026 |
|---|---|---|
| Electricity | 57.19 pence daily standing charge | 54.83 pence daily standing charge |
| Gas | 29.04 pence daily standing charge | 29.68 pence daily standing charge |
Impact on low consumption vs high consumption households
The way standing charges affect your bill will depend on how much energy you use.
If your household uses a lot of energy, then a tariff with a lower unit rate might help to reduce your monthly bill, even if it comes with a slightly higher standing charge.
For households that use very little energy, a tariff with a lower standing charge could work out cheaper, as the flat fee you pay each day will be lower, regardless of how much energy you use.
That's why it's important to look at the unit rates and standing charge when comparing tariffs, not just the monthly or annual amount. These costs can vary between tariff types, including fixed tariffs and standard variable tariffs (SVTs). It's worth understanding the differences before making the decision.
Which tariff setup could suit your household?
- Higher energy usage - Lower unit rate, higher standing charge
- Lower energy usage - Lower standing charge, higher unit rate
- Empty or rarely-used property - Lower or zero standing charge
Tariff availability varies between suppliers, and not all suppliers offer the same pricing structures. If you're considering changing suppliers, our guide to switching energy suppliers can help you to better understand the process.
Other tariff types to consider
Depending on your lifestyle and energy habits, some specialist tariffs may be worth exploring, for example:
- EV tariffs: designed for households with an EV, these tariffs typically offer lower rates for charging during specified time periods.
- Time-of-use tariffs: if you're able to be more flexible about when you use energy, you could save money by shifting some of your energy use to cheaper, off-peak periods with tariffs such as FreePhase.
How do standing charges impact vulnerable customers?
Because standing charges are a fixed daily cost, they can make up a larger portion of the bill for households with lower energy use. This can be particularly challenging for customers with low incomes and those with prepayment meters, as the charge is applied even when little or no energy is used.
In an effort to support those affected, regulators and suppliers are continuing to explore ways to help vulnerable customers, including reviewing alternative tariff structures and providing targeted assistance for eligible households.
Some suppliers offer additional protections through schemes like the Priority Service Register (PSR).
Why would standing charges increase or decrease?
We may change standing charges over time because they help cover the cost of supplying gas and electricity to your home and maintaining your meter.
Reasons standing charges can increase:
- Changes to industry or government-funded schemes
- Inflation increasing the cost of energy services
- Rising costs to maintain and upgrade the energy network
- Industry-wide costs being shared across suppliers and customers
Reasons standing charges can decrease:
- Changes to industry funding or government policy
- Regulators or suppliers changing how costs are recovered
- Regulatory decisions that shift costs into unit rates instead
- Lower costs across the energy sector
Industry, regulatory, and economic factors can affect standing charges, so they can rise or fall independently of your unit rates. This means that when your unit rates increase or fall, your standing charges may not.
FAQs about standing charges
Does everyone have to pay standing charges?
Most energy customers will pay a standing charge as part of their tariff, although some users may be eligible for additional support or exemptions.
Do I pay a standing charge with a prepayment meter?
Yes, prepayment meters include a standing charge, just like a credit meter, unless you are on a zero-standing-charge tariff.
Do smart meters include a standing charge?
Yes, standing charges apply to all meter types, whether you have a smart meter or a traditional non-smart meter.
Do I have to pay a standing charge on an empty property?
Yes, in most cases. As long as your property remains connected to the energy network, standing charges will usually continue to apply.
Are there any alternatives to standing charges?
Some tariffs offer lower or zero standing charges, but in many cases, this is balanced by higher unit rates. The best option for you will depend on your household energy use. If a property will be empty for an extended period, you may be able to arrange a meter disconnection, but additional charges may apply.
Are standing charges being scrapped?
In short, no. Regulators like Ofgem are regularly reviewing the current set-up, and there have been discussions about lowering or removing standing charges, including proposals to introduce pilot trials for low- or zero-standing-charge tariffs, but as of right now, they do remain in place.
Can I get an energy tariff with zero standing charge?
Some suppliers offer tariff options with no standing charge; usually, with these tariffs, the unit rate is set a little bit higher. Currently, EDF doesn't widely offer any zero-standing-charge tariffs, but we occasionally run trials.
If you're exploring ways to manage your energy costs, you may want to compare fixed energy tariffs, which can provide more price stability by fixing your unit rate and standing charge for a set period.
Explore our available energy tariffs to find the best offer.