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Gas and Electric Standing Charges & Tariffs Explained
After checking your energy bill, you may be wondering what a standing charge is.
A standing charge is applied to most energy bills for both domestic and business energy. Energy suppliers add a daily standing charge to cover the cost of supplying gas and electricity to your property and business premises.
Energy suppliers will set their own electricity and gas standing charge based on a number of commercial decisions. Your daily standing charge includes upkeep/ maintenance of the supply network, meter reading visits and any government support schemes.
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How to Switch Energy Suppliers
What Are the Benefits of a No Standing Charge Energy Tariff?
There are several benefits of no standing charge tariffs. These include:
- No daily charges – you only pay for the energy you use.
- Unit rates can be reduced once you use a certain amount of energy.
Due to these advantages, a no standing charge tariff is typically best suited to properties that aren’t in frequent use. For instance, a home or business that is only occupied for a few months a year could benefit from a no standing charge tariff and will only be charged for the energy used when someone is present in the property.
Can I Switch to a Business Energy No Standing Charge Contract?
Currently, there are very few suppliers offering no standing charge energy contracts for businesses. As a result, many businesses are aiming to reduce the cost of their daily standing charge.
Standing charges can vary quite significantly for businesses. To help your business find the right deal, we’ve gathered the cheapest standing charge rates from our panel of suppliers.
Cheapest Business Electricity Standing Charges
In the table below, you can view the cheapest business electricity standing charges from our panel of suppliers. These tariffs are based on a contract in London with a usage of 25,000 kWh per year. All data is from December 2023.
It’s important to keep in mind that your standing charge prices will vary depending on your specific circumstances.
| Supplier | Tariff Name | Contract Length | Daily Standing Charge | Annual Standing Charge Cost |
|---|---|---|---|---|
| EDF | Online Fixed for Business | 1 Year | 25p | £91.25 |
| EDF | Online Fixed for Business | 2 Year | 25p | £91.25 |
| EDF | Online Fixed for Business | 3 Year | 25p | £91.25 |
| British Gas Lite | BG Lite V67 | 1 Year | 40p | £146 |
| British Gas Lite | BG Lite V67 | 2 Year | 42p | £153 |
| Valda | Valda Energy 3UR | 1 Year | 42p | £153 |
| Valda | Valda Energy 3UR | 3 Year | 42p | £153 |
| Valda | Valda Energy 3UR | 2 Year | 42p | £153 |
| British Gas Lite | BG Lite V67 | 3 Year | 45p | £164 |
| Scottish Power | For Business vR2 | 1 Year | 51p | £187 |
Cheapest Business Gas Standing Charges
As with business electricity, few suppliers are willing to offer no standing charge gas tariffs currently. To help you reduce your standing charge costs, we’ve provided the cheapest business gas standing charges from our panel of suppliers.
All prices are from December 2023 based on a usage of 25,000 kWh in the London region.
| Supplier | Tariff Name | Contract Length | Daily Standing Charge | Annual Standing Charge Cost |
|---|---|---|---|---|
| EDF | Online Fixed for Business Gas | 3 Years | 25p | £91.25 |
| EDF | Online Fixed for Business Gas | 1 Year | 25p | £91.25 |
| EDF | Online Fixed for Business Gas | 2 Year | 25p | £91.25 |
| British Gas | B1A DSC DD Acquisition | 3 Year | 30p | £109.50 |
| British Gas | B1A DSC DD Acquisition | 2 Year | 30p | £109.50 |
| British Gas | B1A DSC DD Acquisition | 1 Year | 30p | £109.50 |
| Scottish Power | For Business vW1 | 3 Year | 31p | £111.73 |
| Scottish Power | For Business vW1 | 2 Year | 31p | £111.73 |
| Scottish Power | For Business vW1 | 1 Year | 31p | £111.73 |
| Valda | Valda Energy NY - LSC | 3 Year | 39p | £142.35 |
At Love Energy Savings, we have a team of business energy experts who can provide advice on choosing the right tariff when you compare business energy.
By switching your business energy with us, you have the unique option of completing your full switch online. If you'd like more support, our expert team will still be available to discuss your tariff over the phone.
Could Homeowners Save Money With a No Standing Charge Tariff?
The main benefit of a no standing charge is that you will only pay for the energy you use.
This can be ideal for anyone who owns a property they will not be using year-round, such as a holiday home. When you are not using the property, you will have little to no energy costs to pay.
However, choosing a no standing charge tariff will often mean you have to pay higher energy unit rates for the gas and electricity you do use.
Whether you can save money on your energy bills with a no standing charge tariff will depend on your individual circumstances.
Although high energy users would be unlikely to see savings, if your energy use over the year is relatively small, you could find savings with a no standing charge tariff.
What Is the Cost of Home Energy Standing Charges?
Each energy supplier charges a different amount depending on a variety of factors including the tariff you select. Some energy suppliers offer no-standing charge tariffs.
Here are the average standing charges for gas and electricity:
- Electricity standing charge ranges from 5p to 60p per day
- Gas standing charge ranges from 10p to 80p per day.
Can I Switch to a Prepayment No Standing Charge Tariff?
If your home uses a prepayment meter, you can still switch to a no standing charge tariff.
The pros and cons of a no standing charge tariff for customers who pre-pay for energy are much the same as any other tariff. You may face a higher unit rate and you should compare the full cost of your tariffs to find out how much you can save by switching.
How to Switch to a No Standing Charge Tariff With Love Energy Savings
At Love Energy Savings, we work with a wide range of suppliers to bring you the best possible choice when it comes to finding the right gas and electricity deal for you.
With our innovative energy comparison engine, you can even compare our best no standing charge tariffs. Our dedicated account managers will then handle the entire switching process on your behalf.
Try our free comparison tool below to find out how much you could save by switching to a no standing charge today.
No Standing Charge Tariff FAQs
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Where on my energy bill can I find the standing charge?
You can usually find your standing charge marked as units of daily usage on your bill.
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What are the disadvantages of no standing charge tariffs?
The main disadvantage of tariffs with no standing charge is the higher unit costs. These expensive rates can cause your energy bills to rise if you use a significant amount of energy. Fixed-rate tariffs that include a standing charge tend to offer cheaper and more competitive unit rates.
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Which suppliers offer no standing charge tariffs?
Most energy suppliers will offer a no standing charge option to their customers. With Love Energy Savings, you can compare our huge range of trusted energy suppliers in a matter of seconds.
To compare the latest no standing charge tariffs, simply complete our quick online energy comparison tool.