Gas and Electric Standing Charges & Tariffs Explained
After checking your energy bill, you may have noticed a standing charge listed for both gas and electricity. But what exactly is a standing charge, and could switching to a no-standing charge tariff save you money?
In this guide, we’ll explain how standing charges work, how much they cost, and whether a no-standing charge energy tariff is right for you. Whilst it may save money for some businesses, it may not be suitable for others.
We compare prices from the UK's best energy providers. See how much you can save today!
What Is a Standing Charge on Your Energy Bill?
A standing charge is a daily fee added to most energy bills, both for domestic and business customers.
It covers the fixed costs of supplying gas and electricity to your home or business, regardless of how much energy you use.
Why Do Energy Suppliers Add a Standing Charge?
Every energy supplier sets its own standing charge based on operational costs.
This daily fee helps to cover:
- Maintenance of the energy network
- Meter readings and maintenance
- Customer service and billing
- Government schemes and environmental levies
Even if you use no gas or electricity on a given day, you’ll still pay your energy suppliers' standing charge
How Do Standing Charges Affect Your Energy Bill?
The standing charge is billed per day and then added to your total monthly or quarterly energy costs.
Here are the average UK energy standing charges in 2025:
| Electricity | 5p – 60p per day | £18 – £219 per year | |
|---|---|---|---|
| Gas | 10p – 80p per day | £36 – £292 per year |
Each supplier’s rate varies depending on your tariff, region, and meter type.
Could Your Business Save with a No Standing Charge Tariff?
This depends on your core operating hours. A no-standing charge tariff means you’ll only pay for the energy you use.
This can be great for premises that are not occupied all year, such as holiday homes or seasonal businesses, so that they’re not being charged daily fees when no energy is being used.
However, no standing charge tariffs usually have higher unit rates for gas and electricity.
So, while low-usage customers may benefit, higher-usage households or businesses are likely to pay more overall.
When No Standing Charge Tariffs Work Best
Great for:
- Holiday homes or second properties
- Small businesses with irregular operating hours
- Customers who use very little energy throughout the year
Not ideal for:
- Businesses with steady energy demand
- Anyone using energy daily, even in small amounts
Can You Get a No Standing Charge Prepayment 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
No Standing Charge Tariff FAQs
-
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.
-
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.
-
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.